Feb 21 • 06:55 UTC 🇱🇻 Latvia LSM

Hungary threatens to block €90 billion EU aid loan to Ukraine

Hungarian Prime Minister Viktor Orbán announced on social media that Hungary will block a €90 billion loan intended for Ukraine, mirroring Ukraine's suspension of oil supplies via the Druzhba pipeline.

In a recent social media post, Hungarian Prime Minister Viktor Orbán declared that Hungary would obstruct a significant €90 billion aid loan allocated to Ukraine, as a countermeasure to Ukraine's actions regarding the Druzhba oil pipeline. This pipeline has been a vital source of oil supplies to Hungary, which were recently halted due to alleged damage during Russian airstrikes, complicating the relations between Ukraine and Hungary. Orbán's statement underscores Hungary's dissatisfaction with Ukraine's handling of the oil pipeline issue, indicating that Hungary refuses to be coerced into accommodating Ukraine in the regional economic and political landscape.

The €90 billion loan, supported by leaders of EU member states in December, earmarked €60 billion for bolstering Ukraine's defense capabilities and €30 billion for stabilizing its national finances, is contingent on approval from all 27 EU member nations. Hungary, alongside Slovakia and the Czech Republic, initially agreed to support the loan under the condition that they would not bear the responsibility for interest payments or loan repayments. However, Hungary’s recent stance presents a significant hurdle for the transaction to move forward, potentially affecting EU's collective aid strategy towards Ukraine amidst ongoing geopolitical tensions.

The broader implications of Hungary's blockade signal potential fractures within EU unity in support of Ukraine, particularly as the region grapples with the ramifications of Russia's invasion. Orbán’s efforts to leverage the situation may resonate with nationalistic sentiments in Hungary, reinforcing his political stance domestically while complicating EU's plans to assist Ukraine during a critical period of conflict, raising concerns about solidarity among member states in times of crisis.

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