Hungary Blocks EU's €90bn Ukraine Loan, Orban Accused of 'Blackmail'
Hungary Blocks EU's €90bn Ukraine Loan Amid Orban Dispute

Hungary's Orban Blocks EU's €90bn Aid Package to Ukraine

Hungarian Prime Minister Viktor Orban, a vocal critic of European Union support for Kyiv, is frustrating the bloc's efforts to provide a crucial €90bn loan to Ukraine. The move comes as EU leaders accuse him of undermining unity and engaging in what they term "blackmail" over the war effort.

Orban's Stance and EU Backlash

Viktor Orban, considered one of Vladimir Putin's closest allies in Europe, has consistently opposed the EU's commitment to supporting Ukraine. Following a summit on Thursday, German Chancellor Friedrich Merz labeled Orban's actions as an act of "gross disloyalty," while European Council President Antonio Costa described the opposition as constituting "blackmail." The loan, agreed upon in December, aims to help Ukraine sustain its fight for up to two more years, but requires unanimity among the EU's 27 member states for implementation.

Pipeline Dispute as Justification

Orban has justified blocking the €90bn package by citing a dispute over a pipeline damaged by the war, which carries Russian oil through Ukraine to Hungary and Slovakia. Kyiv and Brussels attribute the damage to a Russian attack in January, estimating repairs will take six weeks. However, Hungary claims the pipeline is already functional and accuses Ukraine of withholding oil. In a post on X after the summit, Orban stated, "As long as Zelensky does not lift the oil blockade, they will not receive any money from Brussels."

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Implications for Ukraine and EU Unity

EU officials warn that without the loan, Ukraine could face cash shortages within weeks. President Volodymyr Zelenskyy has described the funds as "critical" for the war effort, noting they are essential to protect lives. Without foreign aid, Ukraine may be forced to cut spending on pensions, public sector wages, and welfare to maintain defense funding. The blockage highlights tensions within the EU, with some members hoping Hungary will reconsider its position after pipeline repairs or following next month's elections, where Orban seeks another term with endorsement from Donald Trump.

Potential Workarounds and Future Outlook

Germany's Merz has suggested exploring whether the loan can be implemented without Hungary's approval, noting Budapest has already been excluded from contributing to costs. This situation underscores broader challenges in EU cohesion and support for Ukraine amid waning American aid under the Trump administration. As the standoff continues, the EU faces pressure to find alternative solutions to ensure Kyiv receives necessary financial support.

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