EU moves to bypass Hungarian veto on €90 billion Ukraine loan package

European Commission President Ursula von der Leyen has affirmed that Ukraine will receive €90 billion in interest-free loans from the European Union (EU), notwithstanding Hungary’s persistent efforts to obstruct the disbursement of funds to Kyiv.

Speaking during a high-profile visit to the Ukrainian capital, von der Leyen issued a defiant directive regarding the financial lifeline. “We will provide this loan one way or another. We have different options at our disposal, and we will utilize them,” she stated, signaling Brussels’ readiness to bypass Budapest’s resistance.

Von der Leyen underscored that the loan was a collective commitment initially agreed upon by all 27 EU member states, emphasizing that the bloc would not retreat from its documented pledges.

The European Commission President highlighted that the primary objective of the capital infusion is to address Ukraine’s most critical defense requirements. Specifically, the credit facility will facilitate the procurement, indigenous production, and technological development of advanced defense hardware for Ukrainian forces. Additionally, von der Leyen announced the preparation of a new €100 million support package specifically earmarked for the energy sector.

The Commission’s broader strategy for the 2026–2027 winter season includes a supplementary assistance package valued at €920 million, aimed at stabilizing Ukraine’s embattled energy infrastructure.

Damage to Druzhba pipeline threatens energy security

In a pointed appeal to the Kyiv administration, von der Leyen called for the immediate repair of the Druzhba oil pipeline, which sustained significant damage during recent drone strikes.

The suspension of transit through this arterial route—which serves as a critical conduit for Russian crude exports to Hungary and Slovakia via Ukrainian territory—at the end of January has had immediate repercussions for EU energy security.

The cessation of oil flows has not only exacerbated vulnerabilities within the regional supply chain but has also introduced a volatile new dimension to European diplomatic tensions.

Budapest continues to block resolutions targeting Kyiv

Leveraging the pipeline disruption as political collateral, Hungary has blocked not only the proposed loans to Kyiv but also the ratification of the EU’s 20th sanctions package against Russia.

Hungarian Foreign Minister Peter Szijjarto adopted a hardline stance on the impasse. “Until Ukraine resumes the transit of oil to Hungary and Slovakia via the Druzhba pipeline, we will not permit the approval of decisions critical to Kyiv,” Szijjarto declared.

The administration in Budapest has officially categorized the halt in energy supplies as a matter of paramount national security.

In response, Ukrainian President Volodymyr Zelensky maintained that Moscow bears sole responsibility for the strikes on the pipeline infrastructure. Addressing Hungarian Prime Minister Viktor Orban, Zelensky suggested that if Budapest seeks a cessation of hostilities against the facility, Orban should engage in direct negotiations with Russian President Vladimir Putin.

Zelensky urged Hungary to refrain from imposing restrictions on Ukraine based on these grounds and cautioned against the continued obstruction of Europe’s collective defense mechanisms.