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Hungary is threatening to block a proposed 90 billion-euro European Union loan to Ukraine — worth roughly $106 billion — unless oil shipments through the Druzhba pipeline are restored.
Hungarian Foreign Minister Péter Szijjártó wrote Friday on X that Hungary would oppose the EU funding package until oil transit via the Russian-linked Druzhba pipeline resumes.
“Ukraine is blackmailing Hungary by halting oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and push fuel prices higher before the elections,” Szijjártó said.
He further claimed that blocking oil transit violates the EU-Ukraine Association Agreement and breaches Kyiv’s commitments to the European Union.
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Hungary’s Foreign Minister Peter Szijjarto speaks during a session of Russian Energy Week in Moscow, Russia, on Oct. 15, 2025. (Ramil Sitdikov/Reuters)
The Druzhba pipeline has long been a key route for Russian oil deliveries to parts of Central Europe, including Hungary, even as much of the EU has moved to curb reliance on Russian energy following Moscow’s 2022 full-scale invasion of Ukraine.
The European Commission in January adopted a legislative package to implement a previously agreed 90 billion-euro loan to Ukraine for 2026 and 2027, aimed at supporting the country’s budgetary and military needs, according to a press release.
The financial commitment, known as the “Ukraine Support Loan,” would be structured as a limited recourse loan, with roughly 60 billion euros allocated for military assistance and 30 billion designated for general budget support.
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A general view of Hungarian oil company MOL’s Duna Refinery near Szazhalombatta, about 30 kilometers south of Budapest, on May 5, 2022. (Attila Kisbenedek/AFP via Getty Images)
The Commission said the funding is intended to help Ukraine maintain essential state functions, bolster its defense capabilities and strengthen resilience as the war with Russia continues.
The loan would be financed through common EU borrowing on capital markets and guaranteed by the EU budget. The Commission also noted that the EU reserves the right to use immobilized Russian assets within the bloc, in accordance with EU and international law, to repay the loan.
Ukraine’s Ministry of Foreign Affairs on Saturday rejected what it called “ultimatums and blackmail” from the governments of Hungary and Slovakia over energy supplies, accusing both countries of taking actions that are “provocative, irresponsible, and threaten the energy security of the entire region.”
The Druzhba oil pipeline between Hungary and Russia at the MOL Group’s Danube Refinery in Szazhalombatta, Hungary, on May 18, 2022. (Bernadett Szabo/Reuters)
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“Ukraine is in constant contact with representatives of the European Commission regarding the damage to Ukrainian energy infrastructure caused by daily Russian strikes. We have also provided information about the consequences of these Russian attacks on the Druzhba oil pipeline infrastructure to the governments of Hungary and Slovakia,” the ministry said in a statement. “Security and stabilization repair work continues amid daily threats of new missile attacks. Ukraine has also proposed alternative ways to resolve the issue of supplying non-Russian oil to these countries.”
It added that Ukraine remains a “reliable energy partner” to the European Union and argued that “ultimatums should be sent to the Kremlin, and certainly not to Kyiv.”