Hungary has blocked a concerted €90 billion European Union loan for Ukraine, disrupting a financial stabilization package for the war-torn nation just days before the fourth anniversary of Russia's full-scale invasion.
As reported by "Hvylya", citing the Financial Times, the move threatens to derail international support efforts.
According to sources, Hungary's ambassador to the EU objected on Friday to the bloc borrowing the funds for Ukraine through debt issuance backed by the EU budget. The mechanism requires the unanimity of all 27 member states to proceed.
EU leaders had agreed on the loan in December as a "lifeline" for Kyiv, which faces a looming budget gap in April. At the time, Hungary, Slovakia, and the Czech Republic agreed to the plan only on the condition that they would not be held liable for interest or repayment. However, Budapest's veto now jeopardizes not only this tranche but also an €8 billion International Monetary Fund (IMF) program contingent on the EU funding.
The obstruction comes as Hungary prepares for elections in April, with Prime Minister Viktor Orban—a longtime critic of Brussels—facing a significant risk of losing power. Polls indicate that the opposition Tisza party, led by Peter Magyar, currently leads Orban's Fidesz party by approximately 10 points.
Orban has intensified anti-Ukrainian rhetoric ahead of the vote. This week, he accused Kyiv of halting oil flows through the Druzhba pipeline. Although the pipeline was damaged by Russian attacks, the Hungarian premier alleged that Ukraine had refused to conduct necessary repairs.
Without the loan, Ukraine risks financial collapse as early as the second quarter of 2026. The credit was pursued as an alternative measure after EU nations failed to reach an agreement on utilizing frozen Russian assets due to opposition from Belgium, Italy, and France.
