Hungary blocked the European Union from providing loans to Ukraine to help its war efforts.
Viktor Orban, the right-wing prime minister in Budapest, has consistently criticized the bloc’s commitment to supporting Kyiv and is seen as one of Vladimir Putin’s closest allies in Europe.
His country is a member of the EU and he has been accused of weakening the bloc’s position in the war.
Brussels agreed a €90 billion deal in December to help keep Kyiv struggling for the next two years, but Orban blocked the funding.
Speaking after the summit on Thursday, German Chancellor Friedrich Merz accused him of an act of “gross disloyalty”, while the president of the European Council, Antonio Costa, said his opposition amounted to “blackmail”.
How did Orban block the money?
Implementing this interest-free loan requires unanimity among the 27 EU member states.
Ukraine’s allies in the bloc are eager to show they are serious about raising big money to help as American support wanes under Donald Trump. The US has become a major aid provider under Joe Biden’s administration.
Orban justified blocking the €90 billion package citing a dispute over war-damaged pipelines. This ship carries Russian oil via Ukraine to Hungary and Slovakia.
Kyiv and Brussels said a Russian attack in January was to blame for the damage, and it would take another six weeks to repair it. Hungary claims the country is functioning and accuses Kyiv of withholding oil supplies.
Orban posted on X after Thursday’s summit: “As long as Zelensky does not lift the oil blockade, they will not receive any money from Brussels.”
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What happens now?
Some in the EU hope Hungary will change its stance once the pipeline is repaired, or after the country’s elections next month.
Orban has been prime minister since 2010 and is seeking another term. Trump has endorsed it.
But Germany’s Merz has suggested the European Commission consider whether the loan could be implemented without relying on Budapest, which has been exempted from having to contribute to the costs.
Zelenskyy says loan is ‘important’
EU officials have warned Kyiv could run out of cash within weeks without the loan. Volodymyr Zelenskyy said the money was “vital” for his country’s war effort.
“This is a resource to protect lives,” he told EU leaders in a video address.
Without foreign aid, the Ukrainian government may have to start cutting spending on things like pensions, public sector salaries, and welfare in order to continue funding defense.
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