Hungary’s Objection Halts EU Sanctions Package On 23 February 2026 the European Union failed to adopt its 20th sanctions package targeting Russia’s shadow oil‑shipping fleet and energy revenues after Hungary lodged a surprise objection, stopping the vote just before the fourth anniversary of the invasion [1]. Foreign policy chief Kaja Kallas described the outcome as a “setback” and a missed diplomatic signal [1]. The stalled package was intended to increase the economic cost of Russia’s war, while the EU had already delivered €194.9 billion to Ukraine [1]. Most EU members have ended Russian energy imports, but Hungary and Slovakia retain a temporary exemption [1].

Loan to Ukraine Tied to Russian Oil Flow Hungary’s foreign minister Péter Szijjártó announced on 21 February 2026 that Budapest will block the €90 billion interest‑free EU loan approved in December unless Russian oil shipments through the Druzhba pipeline resume [2]. He warned “we will not pay for Ukraine’s war,” linking the loan blockage to the same pipeline dispute that halted Hungarian diesel shipments days before the invasion anniversary [2]. The loan is meant to fund Ukraine’s military and economic needs for two years [2]. Slovakia and the Czech Republic initially opposed the loan, but a compromise gave them protection from any financial fallout [2].

Druzhba Pipeline Disruption Triggers Standoff Ukrainian officials say a Russian drone attack on 27 January 2026 damaged the Druzhba pipeline, stopping crude flows to Hungary and Slovakia [1][2]. Hungary and Slovakia accuse Ukraine of deliberately withholding oil as “blackmail,” though no evidence has been presented [2]. The pipeline, which runs through Ukrainian territory, is a key conduit for Russian oil to Central Europe [1][2]. The halt has become the focal point of Hungary’s leverage over EU decisions on sanctions and the Ukraine loan [1][2].

EU Energy Policy Divergence Remains While nearly all EU states have reduced or ended Russian energy imports, Hungary and Slovakia continue to receive Russian oil and gas under a temporary exemption [1]. The stalled sanctions package sought to cut off energy‑related earnings that fund Russia’s war effort [1]. Kaja Kallas’s comment underscores the diplomatic friction caused by Hungary’s stance [1]. The disagreement highlights a split within the bloc over how to balance energy security with punitive measures against Moscow [1].

Potential Consequences for Ukraine Funding If Hungary maintains its block, the €90 billion loan could be delayed, jeopardizing Ukraine’s ability to finance its armed forces and reconstruction for the next two years [2]. The EU’s prior disbursement of €194.9 billion demonstrates its commitment, but the loan’s interest‑free nature makes it a critical financial pillar for Kyiv [1]. Hungary’s leverage ties the loan to the resumption of Russian oil deliveries, creating a direct link between energy policy and humanitarian aid [2]. The standoff may force the EU to seek alternative financing mechanisms or renegotiate terms with dissenting members [1][2].