Even after the European Council summit, last week Hungary is still blocking the 90 billion euro loan for Ukraine. How is this even possible? And why is Hungary doing it?
What was the loan about?
In February 2026, the European Parliament approved a 90 billion euro loan for Ukraine to help it resist Russia’s invasion. The loan was agreed under so-called enhanced cooperation procedure – mechanism that allows something to be implemented within the EU even if not all 27 member countries agree on it. All financial responsibility for it then goes only to the countries that wanted it – not to the EU as a whole. In this case, 24 EU member states supported the loan for Ukraine, except the Czech Republic, Hungary and Slovakia. Ukraine was supposed to repay the loan after it received war reparations from Russia.
Wait, how come Hungary is blocking the loan, when it doesn’t have to participate in it, you may wonder…
How can Hungary block the loan if it’s not obliged to pay?
The problem is the loan was meant to come from the EU’s joint budget. And when it comes to paying something from the EU joint budget, all member states must agree on it – even those that won’t contribute financially. If they don’t agree, they can use veto, that blocks everything. Which is exactly what Hungary, and its prime minister Victor Orbán, is doing right now.
Why is Orbán doing it?
Victor Orbán claims Hungary is blocking the loan because Ukraine stopped oil flows through the Druzhba pipeline, which supplies Hungary with Russian oil and runs through the territory of Ukraine. In January (2026), this pipeline was damaged by a Russian attack. But instead of directing his anger at the perpetrator, Orbán is taking it out on Ukraine: accusing it of deliberately delaying repairs of the pipeline to energetically harm his country.
Slovakia joined Hungary with the same arguments. For some reason, both countries chose to stay dependent on Russian oil even after the 2009 gas crisis showed them it wasn’t the best idea… As for the Czech Republic, although it did not support the loan, at least it is not blocking its sending now.
Why is Orbán REALLY doing it?
In reality, not even Orbán himself believes that Ukraine is actually to blame for Russia destroying its own oil pipeline… But he’s well aware that if he pretends to believe so and blocks the loan on that basis, he can force the EU into making some concessions towards Hungary. Like for example unfreezing Hungarian funds that have been frozen in 2024 due his violations of rule-of-law in Hungary.
In addition, Orbán has long held anti-European stance and, conversely, a warm attitude towards Russia. Specifically, since 2010, when he became prime minister after his Fidesz party won the elections. Since then, he has been gradually undermining democracy in the country by limiting media freedom, and judicial independence, and fighting against NGOs.
Like every populist, Orbán sees the European Union as something restrictive to his ambitions, while Russia, where a powerful leader does whatever he wants and no one interferes, as an inspiration. This position naturally translates into animosity towards Ukraine (since Ukraine is Russia’s number one enemy) and has already manifested itself in several conflicts. For example, in 2017, when Ukraine passed a law making Ukrainian the required language of study in state schools to fight against growing Russian influence in some of its regions. Orbán framed this as an attack on the Hungarian minority living in Ukraine. He continuously opposed the integration of Ukraine to NATO. And after the Russian invasion of Ukraine in 2022, he refused to sanction Russia, spreading Russian narratives and portraying the attacked country as the aggressor.
Current political context: upcoming elections
The veto on aid for Ukraine is happening in the light of upcoming Hungary’s parliamentary elections in April 2026. To some extent it is also Orban’s strategy to activate his voters. Because this time Orbán is facing his toughest opponent yet: Péter Magyar and his Tizsa party, conservative, pro-European party, currently leading in the election polls.
Last Sunday, Budapest saw two massive rallies: one organized by Orbán’s Fidesz party under the name of “Peace march” with a strong anti-European and anti-Ukrainian sentiment, and another by the Magyar’s Tizsa party demanding democracy and support for Ukraine.
Why should we care?
Because Orbán’s blockade doesn’t concern only Ukraine. Its aim is to weaken the EU. As the famous saying goes: where two are fighting, the third wins. The third being Russia, which is constantly trying to convince European countries to abandon bigger structures like European Union because isolated they would be an easier target for Russia.
Because Russia’s aggression won’t stop at Ukraine. If Putin sees that the West is divided, he may target other countries. Not to mention that this will inspire other countries with expansive tendencies to do the same – which is already happening…
Because, it’s all immoral: imagine how you would feel if someone broke into your home, and set it on fire, only for your neighbor to call the police on you for not putting out the flames fast enough. (Also, it would turn out that the neighbor is friends with the person who set your home on fire…)
Sources:
- EU braced for no deal on €90B Ukraine loan as Orbán refuses to budge
- Parliament approves €90 billion Ukraine support loan package
- EU Ukrajině poskytne půjčku 90 miliard eur tak či onak, řekla šéfka EK
- Ukraine-Hungary oil pipeline row threatens EU loan
- Expert: Maďarsko a Slovensko zůstávají u ruské ropy z politických důvodů, náhrada by trvala jen měsíce
- The Metamorphosis: Thirty Years of Viktor Orbán
- Hungary blocks €90 billion loan for Ukraine over damaged pipeline as tensions escalate
- ‘Something has to give’: EU weighs options to lift Hungarian veto on Ukraine loan
- No breakthrough on Hungary’s veto of EU’s €90bn loan to Ukraine – as it happened