EU Loan to Ukraine: Brussels Circumvents Hungarian Veto

Symbolic Date, Blocked Decision

On February 24, 2026, the fourth anniversary of the Russian-Ukrainian war, the European Union is demonstrating its solidarity with Ukraine on two fronts simultaneously. European Council President António Costa and Commission President Ursula von der Leyen traveled to Kyiv to demonstrate the EU's commitment on the ground — while in Brussels, the legal and technical struggle to approve the Union's €90 billion loan package is underway, facing a Hungarian veto.

The European Parliament already approved all three pieces of legislation necessary for the loan on February 11 — the enhanced cooperation regulation was adopted with 458 votes in favor, 140 against, and 44 abstentions. The plan was for the European Parliament and the Council to sign the documents on February 24, concluding the approval process. However, Viktor Orbán unexpectedly issued a veto.

The Friendship Oil Pipeline as a Pretext

On February 20, Hungary blocked one of the three necessary pieces of legislation: the amendment to the 2021-2027 multiannual financial framework, which requires unanimous member state approval. Minister of Foreign Affairs and Trade Péter Szijjártó announced that as long as Ukraine does not restart the transit of Russian crude oil via the Friendship oil pipeline, the Hungarian government will block all EU decisions important to Ukraine.

The root of the dispute dates back to January, when a drone strike damaged the pipeline. According to the Ukrainian side, continuous Russian bombing is slowing down the repair work. However, Budapest and Bratislava believe that Kyiv is deliberately hindering the restoration of transit. European Commission spokesperson Paula Pinho stated unequivocally that the Hungarian behavior violates the EU's fundamental principle of "sincere cooperation", especially since Hungary, the Czech Republic, and Slovakia have already been granted exemptions from participating in the loan.

Enhanced Cooperation as a Solution

Since the Czech Republic, Hungary, and Slovakia are not joining the loan arrangement, the EU is applying the enhanced cooperation procedure: this allows 24 of the 27 member states to implement joint measures without unanimity. The European Commission has announced that it is continuing technical preparations despite the veto, and the first disbursement is expected by April 2026.

The €90 billion package consists of two parts: €30 billion for macro-financial and budgetary support, and €60 billion for strengthening Ukraine's defense capabilities and procuring military equipment. Hungary has also vetoed the 20th package of Russian sanctions.

Sharp EU Criticism and the Electoral Dimension

The EU reactions have been exceptionally harsh. German Foreign Minister Johann Wadephul called Budapest's decision "shocking." Polish Foreign Minister Radosław Sikorski, recalling the Soviet invasion of Budapest in 1956, called for solidarity from Hungary: "I would have expected greater solidarity towards Ukraine." The Austrian Foreign Minister even claimed that Hungary is "doing Russia's business."

However, there may also be domestic political calculations behind the veto: ahead of the upcoming 2026 Hungarian parliamentary elections, the Orbán government is maximizing anti-Ukrainian rhetoric. Sikorski directly accused Fidesz of inciting hatred against the victim of aggression in order to stir up voters.

What's Next?

Brussels has not yet given up on a diplomatic solution: the European Commission has convened an Oil Coordination Group to resolve the Friendship oil pipeline dispute. If this fails, the EU is prepared to circumvent the Hungarian veto through technical and legal means — the €90 billion loan will ultimately reach Kyiv, albeit with a delay and at the cost of a new low in Budapest-Brussels relations.