Hungary announced on 20 February that it will block the allocation of a $106 billion (€90 billion) EU credit to Ukraine until the transit of Russian oil through the Druzhba pipeline is restored.
The Druzhba dispute: Oil transit as a bargaining chip
Hungarian Foreign Minister Péter Szijjártó accused Ukraine of blackmail, claiming Kyiv "stopped oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and raise fuel prices before elections."
"We are blocking the EU loan for Ukraine in the amount of €90 billion until the transit of oil to Hungary through the Druzhba pipeline is restored," the Hungarian minister declared.
Szijjártó further argued that by blocking oil transit to Hungary, Ukraine is violating the EU-Ukraine Association Agreement. "We will not succumb to this blackmail," he said.
The Financial Times, citing four sources, reported that Hungary's ambassador to the EU on 20 February objected to borrowing funds for Ukraine through debt guaranteed by the EU budget.
A Broken promise? The EU demands adherence to the december agreement
The European Commission expects Hungary to honor the agreement reached at the EU leaders' level on 19 December 2025, Commission spokesperson Balázs Újvári told Europeiska Pravda's correspondent.
"During the European Council meeting in December, a unanimous political agreement was reached on providing €90 billion in resolute support for Ukraine's budgetary and military needs over the next two years," Újvári said.
He recalled that "on the basis of this, on 14 January, the European Commission adopted a package of legislative proposals."
"We expect all member states to adhere to this political agreement with the aim of final approval of the loan," the Commission spokesperson stressed.
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The EU is scheduled to give final approval to the $106 billion allocation for Ukraine for 2026-27 on 24 February.
Ukraine’s alternative: The Odesa-Brody pipeline proposal
The December EU summit had already granted an exception for Hungary, Slovakia, and Czechia — the three countries agreed not to participate in the lending scheme but pledged not to obstruct it. Hungary's move to block the credit contradicts that commitment.
Meanwhile, Kyiv has proposed an alternative: using the Odesa-Brody pipeline for oil transit to Hungary and Slovakia.
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Frequently asked questions
Hungary announced it is freezing the €90 billion ($106 billion) credit until the transit of Russian oil through the Druzhba pipeline is restored. Foreign Minister Péter Szijjártó accused Ukraine of "blackmail," claiming Kyiv intentionally stopped oil flow to cause supply disruptions and raise fuel prices in Hungary.
In December 2025, EU leaders reached a unanimous political agreement for the loan. Hungary, along with Slovakia and Czechia, was granted an exception where they would not participate in the lending scheme but pledged not to obstruct it, a commitment the European Commission now expects Hungary to honor.
Kyiv has denied the accusations of blackmail and proposed an alternative solution to the energy standoff. Ukraine suggested using the Odesa-Brody pipeline to facilitate oil transit to Hungary and Slovakia, providing a different route to maintain supply.
The Druzhba pipeline is a critical piece of infrastructure used to transport Russian oil to Central Europe. Hungary's government claims that the suspension of transit through this pipeline violates the EU-Ukraine Association Agreement and creates an energy crisis for their nation.
The European Union is scheduled to give final approval for the $106 billion allocation, intended for Ukraine's budgetary and military needs for 2026-27, on 24 February. The European Commission is currently pushing member states to adhere to the political agreement reached in December to ensure the funds are released.
