Sunday, February 22, 2026-Brussels’ landmark plan to approve a €90‑billion European Union loan to support Ukraine’s finances and defense is facing a major setback after Hungary last week blocked the package, underscoring deep divisions within the bloc over continued aid to Kyiv.
Hungary’s veto — which is required because the loan involves changes to the EU budget that must be unanimous — came as EU leaders were preparing final approval ahead of the fourth anniversary of Russia’s full‑scale invasion. The loan, agreed in principle in December 2025, would provide Ukraine with much‑needed budget support and military funding through 2026 and 2027 but is now on hold amid an intensifying standoff.
Budapest’s objections are tied to a broader energy dispute involving the Druzhba oil pipeline, which has been out of service since late January due to damage and has disrupted Russian oil shipments through Ukrainian territory to Hungary and Slovakia.
Hungarian leaders have accused Kyiv of failing to facilitate repairs and have linked the resumption of oil flows to their support for the loan, framing the situation as “blackmail” and a threat to their national energy security. Hungary’s foreign minister has been explicit that the €90‑billion package will remain blocked until crude oil transit is restored.
The veto has alarmed both Ukrainian officials and EU partners, who warn that delays in funding could deepen Kyiv’s financial crisis and hinder its ability to sustain essential government functions and defense operations in the coming months.
Analysts say the dispute highlights fault lines in European unity over support for Ukraine, energy dependencies, and domestic political calculations — particularly with Hungary’s parliamentary elections approaching. EU policymakers are now exploring options to resolve the impasse and secure timely assistance for Ukraine, but the unfolding crisis exposes how a single member state’s strategic veto can disrupt major bloc‑wide initiatives at a critical juncture.
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