Hungary blocks EU aid and sanctions over Ukraine oil pipeline dispute on February 23, 2026

Hungary is blocking a $1.1 billion sanctions package against Russia and a large loan for Ukraine. This is due to a dispute over the Druzhba oil pipeline.
By Newsroom | Politics, Europe |

Hungary has stopped a new set of European Union sanctions against Russia and a large loan meant for Ukraine. This action comes as Ukraine's oil pipeline to Hungary has been stopped, and Hungary is demanding its restart. The move threatens to disrupt EU unity just before the fourth anniversary of Russia's full-scale invasion of Ukraine.

The EU needs all member countries to agree for sanctions and financial packages to pass. Hungary's decision has caused strong reactions from other EU nations, with some accusing Budapest of using the situation for political gain.

Hungary blocks latest EU sanctions on Russia, $105B loan to Ukraine - 1

Hungary's Stance on Sanctions and Aid

Hungary has declared it will block the EU's 20th package of sanctions against Russia. This package includes new trade bans, restrictions on exports, and import bans on Russian goods like rare earth minerals, metals, and chemicals. The total value of these import bans is estimated to be at least $1.1 billion.

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In addition to blocking sanctions, Hungary is also holding up a significant EU loan for Ukraine. Reports vary on the exact amount, with figures of $105 billion and €90 billion mentioned. This aid is intended to support Ukraine's economy.

Hungary blocks latest EU sanctions on Russia, $105B loan to Ukraine - 2

Hungary's position, as stated by Prime Minister Viktor Orbán and Foreign Minister Péter Szijjártó, is tied to the resumption of oil transit through the Druzhba pipeline. Hungary claims that Ukraine suspended oil deliveries, causing this obstruction.

"No EU loans can be handed to Ukraine until oil deliveries to Hungary are resumed." - Viktor Orbán, Prime Minister of Hungary

The Druzhba Pipeline Dispute

The Druzhba pipeline is a key route for transporting Russian oil to several European countries, including Hungary and Slovakia. The supply of oil through this pipeline was reportedly interrupted in January.

Hungary blocks latest EU sanctions on Russia, $105B loan to Ukraine - 3

  • Ukraine's Account: Ukraine states that Russian drone attacks damaged the Druzhba pipeline, leading to the suspension of oil supplies.

  • Hungary's Counterclaim: Hungary accuses Ukraine of deliberately withholding oil supplies, suggesting it's a tactic to pressure Central European nations. Hungary insists Ukraine is not moving fast enough to repair the pipeline and resume transit.

"Ukraine claims Russian drone attacks damaged the Druzhba pipeline; Hungary accuses it of deliberately withholding oil to pressure Central European nations."

This dispute over oil transit has become the primary reason for Hungary's veto.

Reactions from Other EU Members

Hungary's decision has drawn criticism and concern from other EU member states. Some diplomats have expressed frustration, while others have suggested that Hungary might be using this situation for political advantage.

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Hungary blocks latest EU sanctions on Russia, $105B loan to Ukraine - 4

  • French Foreign Minister Jean-Noel Barrot expressed confidence that the sanctions package would eventually pass, calling it a matter of "when, not if."

  • Polish Foreign Minister Radoslaw Sikorski accused Hungary's government of leveraging anti-Ukrainian sentiment to improve its standing in upcoming elections.

"European Commission President Ursula von der Leyen and European Council President António Costa will head to Kyiv to mark the occasion." (Referring to the fourth anniversary of the invasion, highlighting the timing of Hungary's block).

Some reports indicate that Hungary previously agreed not to veto the loan to Ukraine, along with Slovakia and the Czech Republic, on the condition that they would be exempt from contributing financially.

Broader Context: War Anniversary and EU Unity

Hungary's block occurs just before the fourth anniversary of Russia's full-scale invasion of Ukraine. This timing amplifies the impact of the disruption, potentially weakening the united front that the EU has largely presented against Russian aggression.

  • Impact on Ukraine: The delay in financial aid could hinder Ukraine's economic stability during a critical period of the war.

  • EU Consensus: Hungary's actions challenge the bloc's ability to act decisively and uniformly. The need for unanimous consent for sanctions and significant financial decisions means that one member can effectively halt progress.

Despite the challenges, some EU officials remain optimistic that a resolution will be found, allowing the sanctions and aid package to move forward.

Evidence of Disruption

  • Sanctions Package Details: The blocked 20th package includes bans on 20 more Russian banks, efforts to counter Russia's payment systems, stricter export controls on military-use goods and technologies, and import bans on Russian rare earth minerals, metals, and chemicals valued at over $1.1 billion.

  • Financial Aid Figures: Reports mention an EU loan to Ukraine valued at $105 billion or €90 billion. Additionally, Hungary might block another €8 billion tranche from the International Monetary Fund (IMF).

  • Oil Supply Interruption: Oil shipments to Hungary and Slovakia via the Druzhba pipeline have been interrupted since January.

  • Hungary's Dependence: Hungary and Slovakia, both EU and NATO members, have relied on and even increased their imports of Russian oil and gas, benefiting from a temporary exemption from EU import bans.

ActorStated Position/ActionReason Cited
HungaryBlocks 20th EU sanctions on Russia, blocks EU loan to UkraineResumption of oil transit via Druzhba pipeline
UkraineClaims Russian drone attacks damaged Druzhba pipelineSuspension of oil supplies to Hungary
FranceCertain sanctions will pass; "matter of when, not if"General EU stance on sanctions
PolandAccuses Hungary of leveraging anti-Ukrainian sentimentPolitical motivations behind Hungary's actions
SlovakiaThreatens to stop electricity supplies if oil transit isn't restoredAffected by oil supply suspension; past financial loss

Conclusion

Hungary's refusal to approve new EU sanctions against Russia and a significant financial aid package for Ukraine is directly linked to the suspension of oil transit through the Druzhba pipeline. Budapest insists that Ukraine is responsible for the disruption and must resume deliveries. This position has led to a stalemate within the EU, creating tension among member states and casting a shadow over the bloc's united response to the ongoing conflict. While some EU officials believe a resolution is inevitable, the immediate impact is a delay in critical sanctions and financial support for Ukraine, underscoring the challenges of maintaining consensus among 27 member nations.

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Sources Used:

Frequently Asked Questions

Q: Why did Hungary block the new EU sanctions against Russia on February 23, 2026?
Hungary blocked the sanctions because oil supplies through the Druzhba pipeline to Hungary and Slovakia were stopped in January. Hungary wants Ukraine to restart these oil deliveries before agreeing to new sanctions.
Q: What EU aid for Ukraine did Hungary block on February 23, 2026?
Hungary blocked a large EU loan for Ukraine, estimated to be around $105 billion or €90 billion. This money is meant to help Ukraine's economy during the war.
Q: What is the Druzhba pipeline and why is it important for Hungary?
The Druzhba pipeline is a key route for Russian oil to reach Hungary and Slovakia. Hungary needs this oil and is demanding that Ukraine fix the pipeline and restart the deliveries.
Q: What are Ukraine's reasons for the Druzhba pipeline stopping?
Ukraine says that Russian drone attacks damaged the Druzhba pipeline, causing the oil supplies to stop. Hungary, however, believes Ukraine is deliberately withholding the oil.
Q: How have other EU countries reacted to Hungary's block on February 23, 2026?
Some EU countries are frustrated and concerned. France believes the sanctions will eventually pass, while Poland suggested Hungary might be using this to gain political advantage before elections.
Q: What is the total value of the EU sanctions Hungary blocked on February 23, 2026?
The blocked 20th package of EU sanctions against Russia includes import bans on goods like rare earth minerals, metals, and chemicals, valued at least at $1.1 billion.