Feb 22 • 13:15 UTC 🇺🇸 USA Fox News

Hungary threatens to block EU loan to Ukraine unless Russian oil shipments resume

Hungary is threatening to block a €90 billion EU loan to Ukraine unless oil shipments through the Druzhba pipeline are restored.

Hungary's government has issued a strong warning regarding the European Union's proposed financial support for Ukraine, indicating that it will oppose a €90 billion loan unless oil shipments through the Druzhba pipeline are resumed. This pipeline has been a crucial avenue for transporting Russian oil to Central Europe, and the halt of these shipments due to ongoing tensions has raised concerns within Hungary. The Hungarian Foreign Minister, Péter Szijjártó, took to social media to assert that Ukraine is using the suspension of oil transit as a form of blackmail, strategically coordinating with the European Union to disrupt Hungary's oil supply and negatively affect fuel prices ahead of impending elections.

Szijjártó argues that Ukraine's actions not only harm Hungary’s economic interests but also violate the EU-Ukraine Association Agreement. He suggests that Ukraine has an obligation to ensure the stability of oil supplies, and Hungary's support for the financial package should be conditioned on the resumption of oil transit through the Druzhba pipeline. This confrontation highlights the complexities of energy dependencies in Central Europe, where Hungary continues to rely on Russian oil even as the EU seeks to decrease its overall dependence on Russian energy sources due to geopolitical tensions.

The implications of this situation are significant, as Hungary's decision to oppose the EU loan package could create further divisions within the bloc and affect Ukraine's financial stability amidst its ongoing conflict with Russia. Additionally, it raises questions about the future of energy cooperation in Europe, especially given the region's push towards renewable energy and reductions in fossil fuel dependency. As Hungary navigates its energy needs against broader EU sanctions and policies regarding Russia, this conflict over oil supplies may become a central issue in EU discussions and negotiations moving forward.

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