EU threatens Hungary over Ukraine loan – Politico

2026-03-19 - 15:30

Budapest has blocked the controversial €90 billion loan after Kiev halted Russian oil supplies EU officials are considering stripping Hungary of its voting rights to push through a controversial loan for Ukraine, after Prime Minister Viktor Orban threatened to block it, Politico reports. Budapest had signed off on the €90 billion ($105 billion) loan in December before vetoing it in February after Ukraine halted Russian oil flows through the Druzhba pipeline. The bloc has so far avoided what officials describe as a “major confrontation” with Hungary, but this could change after the country’s election on April 12 if Orban remains in power, according to the outlet. Swedish Minister for EU Affairs Jessica Rosencrantz signaled openness to tougher action. Asked by Politico whether Stockholm would consider punitive measures, including triggering Article 7 to strip Hungary of its voting rights, she said: “Absolutely, we are open” to it. If Orban is reelected, “there will be a serious conversation among a group of countries about how to handle this going into the future,” one EU official said. Other diplomats say options under consideration include tying EU funding to stricter rule-of-law conditions and taking Orban to court “over his obstruction on the loan” for Ukraine. Read more Hungary rules out compromises on Ukraine loan The Hungarian leader said he would not allow the loan to proceed until the pipeline, which supplies Hungary with Russian oil, resumes operations. “If there is no oil, there is no money,” he said in a video message on Tuesday. Kiev halted supplies in January, citing damage from Russian strikes, which Moscow denies. Hungary and Slovakia accuse Ukraine of deliberately cutting the supplies for political reasons. The issue has triggered a feud between Kiev and Budapest, devolving into personal threats by Ukrainian leader Vladimir Zelensky against Orban. Under pressure from Brussels, Ukraine allowed a fact-finding mission to assess the pipeline’s condition this week. Hungary has long clashed with Kiev, opposing Ukraine’s EU and NATO bids and remaining reluctant to support funding for its war effort against Russia. Budapest has also blocked the EU’s 20th round of sanctions on Russia.