EU–Hungary clash deepens over €90 billion Ukraine loan

European Council President António Costa and Hungarian Prime Minister Viktor Orbán have exchanged sharply worded letters over Hungary’s decision to block a €90 billion European Union loan intended to support Ukraine, according to correspondence seen by Politico.

The exchange highlights a growing confrontation between Brussels and Budapest after Hungary threatened to withdraw its earlier approval of the financial package and veto the funding unless Kyiv restores the transit of Russian oil through the Druzhba pipeline network crossing Ukrainian territory.

In a letter sent Monday while travelling to Ukraine to mark the fourth anniversary of Russia’s full-scale invasion, Costa urged Hungary to “act in conformity with our common decision of 18 December and to unblock the implementation of the €90 billion Ukraine Support Loan.”

Costa warned that failure to comply with the December 18 agreement would “constitute a violation of the principle of sincere cooperation” among EU member states, adding that “no Member State can be allowed to undermine the credibility of decisions taken collectively by the European Council.”

Orbán responded later the same day, stating that Hungary would continue to oppose the transfer of funds. The Hungarian leader — who faces reelection in April — accused Ukraine of delaying repairs to the Druzhba oil pipeline after it was damaged in a Russian drone strike.

“There are no technical obstacles to restarting the oil transfer via the Druzhba pipeline to Hungary. It only requires a political decision by Ukraine,” Orbán wrote. Describing himself as “one of the most disciplined and consistent” leaders within the EU, he argued that new circumstances justified Hungary’s veto.

“You also certainly see the absurdity of the situation: we take a decision financially favourable to Ukraine that I personally disapprove, then Ukraine creates an energy emergency situation in Hungary, and you ask me to pretend that nothing happened. This is not possible,” Orbán added. “I am not in a position to support any decision whatsoever favourable to Ukraine until they return to normality.”

In his reply, Costa stressed that he remained “fully committed” to safeguarding the energy security of all EU member states and said he would raise the issue of the Druzhba pipeline directly with Ukrainian President Volodymyr Zelenskyy.

The European Union finalized the framework for the €90 billion loan earlier this year after prolonged negotiations over how to finance the package. Without the funds, Kyiv could face a serious budget shortfall as early as April.

Costa is scheduled to travel to Ukraine together with European Commission President Ursula von der Leyen on February 24.

Hungary formally blocked the allocation of the €90 billion loan on February 20. Hungarian Foreign Minister Péter Szijjártó said Budapest would maintain its veto until Ukraine resumes the transit of Russian oil through the Druzhba pipeline.

By Tamilla Hasanova