Hungary said it will block a €90 billion emergency loan for Ukraine as it accused the war-torn country of “blackmail” over a damaged pipeline used for the transit of Russian oil, escalating a confrontation ahead of a general election in April.
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Hungarian Foreign Minister Péter Szijjártó said Kyiv, Brussels and opposition forces were working in coordination to disrupt energy flows for political reasons ahead of a key vote in which Prime Minister Viktor Orbán is trailing in polls by double digits.
“We are blocking the €90 billion EU loan for Ukraine until oil transit to Hungary via the Druzhba pipeline resumes,” Szijjártó said in a social media post on Friday.
“Ukraine is blackmailing Hungary by halting oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and push fuel prices higher before the elections,” which are set to take place on April 12.
Earlier, three diplomats told Euronews that the Hungarian representative had raised objections at a closed-door meeting of EU ambassadors on Friday.
Budapest negotiated an exemption alongside Slovakia and the Czech Republic at a summit in December, which means the three countries are exempted from contributing financially to the loan financed by common debt backed by the EU budget.
The legislative piece blocked by Hungary is subject to unanimity because it amends the EU budget rules to allow borrowing for Ukraine, a non-EU member.
The other two regulations, outlining the structure and conditions for the assistance, were approved on Friday without any issues, as they only needed a qualified majority.
Ambassadors intend to revert to the matter as soon as the Hungarian reserve is lifted, which is often the case as Budapest tries to negotiate last-minute concessions.
The three-part package has already been approved by the European Parliament and was pending final approval by member states. It is extremely rare for legislation to be derailed this late in the process, particularly after EU leaders themselves agreed to it.
Energy dispute at the core of fresh tensions
Tensions between Hungary and Ukraine have escalated sharply as Orbán upped his rhetoric on the campaign trail. The prime minister, who is facing reelection, has often portrayed Ukrainian President Volodymyr Zelenskyy as begging for money and suggested that Ukraine’s joining the EU will inevitably lead to a larger war.
The most recent spat, however, comes as a result of a damaged pipeline connecting Hungary to Russia via Ukraine. The Druzhba pipeline, which dates back to the Soviet Union, was damaged after it was hit by a Russian strike and that has impacted transit.
Still, Budapest argues Ukraine is to blame, accusing it of not doing enough to repair it. Ukraine denies the accusations. The European Commission has convened an emergency meeting for next week to address the spiralling crisis, even though Brussels doesn’t see an immediate risk for Hungary when it comes to oil reserves.
Ukraine itself is in the midst of a difficult winter, with gruelling temperatures below zero. Russia’s constant pounding with missiles and drones means a large part of its energy infrastructure has been destroyed and cannot cope with the heating needs of civilians.
The move comes as the EU races to provide financial support for Ukraine to keep it afloat before spring, a deadline set by President Zelenskyy, who warned of dire financial consequences if not, while pushing a new package of sanctions against Moscow as punishment for its full-scale invasion entering its fourth-year next week.
Ambassadors failed to reach a deal on the sanctions on Friday.
The president of the European Commission, Ursula von der Leyen, and the president of the European Council, António Costa, will be in Kyiv next week in a symbolic show of support for Ukraine to mark the grim milestone.
