Hungary to block 90 billion euro EU loan to Ukraine in Russian oil dispute
Al Jazeera
February 20, 2026
AI-Generated Deep Dive Summary
Hungary has decided to block a €90 billion EU loan intended for Ukraine until Kyiv resumes oil shipments via the Druzhba pipeline. The move was announced by Hungarian Foreign Minister Peter Szijjarto, who accused Ukraine of halting the oil flows for political reasons. Hungary and Slovakia, the only EU countries with refineries still using Russian oil from the Druzhba pipeline, have been struggling to secure alternative supplies since the halt began on January 27 following a reported Russian drone attack that damaged Ukrainian infrastructure.
Both Hungary and Slovakia claim Ukraine is withholding oil transit as part of a political strategy. In response, Hungary has tapped into its strategic oil reserves, releasing approximately 1.8 million barrels to address shortages. Meanwhile, Croatia’s JANAF pipeline operator has stated that there is no need for Hungary to release additional reserves, as non-Russian crude oil is being transported through the pipeline without delay. MOL, Hungary’s state-owned oil company, has ordered tankers carrying oil from various sources, including Saudi Arabia and Russia, to supply its refineries in Hungary and Slovakia.
The situation highlights growing tensions over energy supplies in Europe, with Ukraine accusing Hungary of using the loan dispute as a tool to pressure Kyiv. The conflict underscores the delicate balance of interests at play, with Hungary prioritizing its economic and geopolitical ties to Russia while also navigating relations with the EU and Ukraine. As the standoff continues, it raises questions about the stability of energy supplies in the region and the potential broader implications for EU-Ukraine relations.
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Originally published on Al Jazeera on 2/20/2026