Hungary is blocking the European Union from providing Ukraine with a loan to help its war effort.
Viktor Orban, the right-wing prime minister in Budapest, has been a constant critic of the bloc’s commitment to supporting Kyiv and is seen as one of Vladimir Putin’s closest allies in Europe.
His country is a member of the EU, and he has been accused of undermining the bloc’s position on the war.
Brussels agreed a deal worth €90bn in December to help Kyiv keep fighting for up to two more years, but Mr Orban is blocking the money from being provided.
Speaking after a summit on Thursday, German Chancellor Friedrich Merz accused him of an act of “gross disloyalty”, while the European Council’s president, Antonio Costa, said his opposition constituted “blackmail”.
How is Orban blocking the money?
The implementation of the interest-free loan requires unanimity among the EU’s 27 member states.
Ukraine’s allies within the bloc had been keen to show they’re serious about stumping up big money to help due to America’s waning support under Donald Trump. The US had been a major provider of aid under Joe Biden.
Mr Orban has justified blocking the €90bn package by citing a dispute over a pipeline damaged by the war. It carries Russian oil through Ukraine to Hungary and Slovakia.
Kyiv and Brussels say a Russian attack in January was the cause of the damage, and it will take another six weeks to repair. Hungary claims it’s already functional and accuses Kyiv of withholding the oil.
Mr Orban posted on X following the Thursday summit: “As long as Zelensky does not lift the oil blockade, they will not receive any money from Brussels.”
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What happens now?
Some in the EU hope Hungary will change its position once the pipeline is repaired, or following the country’s election next month.
Mr Orban has been prime minister since 2010 and is seeking another term in office. Mr Trump has endorsed him.
But Germany’s Mr Merz has suggested the European Commission look into whether the loan can be implemented without relying on Budapest, which has already been excluded from even having to contribute towards the costs.
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Zelenskyy says loan is ‘critical’
EU officials have warned Kyiv could run short of cash within weeks without the loan. Volodymyr Zelenskyy said the money was “critical” for his country’s war effort.
“It is a resource to protect lives,” he told EU leaders in a video address.
Without foreign aid, Ukraine’s government would likely have to start cutting spending on things like pensions, public sector wages, and welfare in order to keep funding defence.
