Hungarian PM defends EU veto on Ukraine loan amid oil dispute

Hungarian Prime Minister Viktor Orban on Friday defended his decision to maintain a veto on a large loan for Ukraine, linking it directly to the ongoing disruption of oil supplies via the Druzhba pipeline.

Speaking at a press conference in Brussels following the first day of the European Council Summit, Orban reaffirmed that Hungary would refuse to approve the final formal step for the European Union (EU)’s 90-billion-euro (103 billion U.S. dollars) financial assistance package for Kyiv as long as the “oil blockade” remains.

“No oil, no money,” Orban said. Despite significant pressure from other EU leaders, Hungary’s position remains unchanged, he underlined.

The proposed loan is a “bad strategic decision,” he said, arguing that since the pipeline is technically operational, the current disruption of transit is “political in nature.”

German Chancellor Friedrich Merz (L) talks with Spanish Prime Minister Pedro Sanchez before an EU summit in Brussels, Belgium, March 19, 2026. (Xinhua/Peng Ziyang)

Orban suggested that other EU member states could bypass the collective mechanism and provide support to Ukraine on a bilateral basis. He criticized the current EU framework for obscuring the origin of funds.

The Hungarian leader also signaled that Budapest retains further leverage in its ongoing dispute with Kyiv, since 40 percent of Ukraine’s electricity supply passes through Hungary. He hinted at potential opposition to future sanctions packages and EU budget decisions that require unanimous consent.

While he said that Hungary’s stance is “morally justified and politically correct,” Orban nevertheless added that his government is ready for further debate on the matter.

The dispute reflects broader tensions in recent weeks between Budapest, Bratislava and Kyiv, following the disruption of oil transit. In response to the halt, Hungary has already banned exports of gasoline and diesel to Ukraine.

The two-day European Council meeting in Brussels, which began Thursday, has a wide-ranging agenda including financial aid and regional security.