Hungary blocks EU sanctions, Ukraine loan

BRUSSELS, Feb. 24, 2026 — Hungary has blocked the European Union’s latest Russia sanctions package and a €90 billion loan for Ukraine, extending a veto on the eve of the war’s fourth anniversary, according to Reuters and the Associated Press.

EU officials say the standoff is tied to a dispute over the Druzhba pipeline, with Hungary accusing Kyiv of delaying oil flows while Ukraine says Russian drone damage halted deliveries, as AP reported, Euronews noted, and Al Jazeera reported.

Pipeline dispute drives the standoff

The Soviet-era Druzhba system carries Russian crude across Ukrainian territory to refineries in Hungary and Slovakia, which still rely on it under an EU sanctions exemption, according to the AP and Euronews.

Ukraine says a January drone strike on Russian pipeline infrastructure stopped the oil flow, while Hungary and Slovakia blame Kyiv for the delay and say energy security is at risk, Reuters reported, a dispute detailed by Al Jazeera.

EU leaders call veto a setback

EU foreign policy chief Kaja Kallas called the failure to agree on the 20th sanctions package a setback, and European Council President António Costa urged Hungary to respect a previously agreed loan deal, Reuters said, while Euronews reported that the dispute tests the EU’s duty of sincere cooperation.

European leaders marked the anniversary with renewed pledges to back Kyiv even as Hungary drew sharp criticism, with Germany and France highlighting solidarity and Poland calling the veto political sabotage, the AP reported, and The Guardian wrote.

Aid and sanctions at risk

The blocked package would be the EU’s 20th round of Russia sanctions, alongside a €90 billion loan meant to cover much of Ukraine’s budget needs for two years, as the AP detailed, with Reuters noting that Hungary has also vetoed the sanctions plan.

Analysts and officials say Prime Minister Viktor Orbán is leveraging the dispute ahead of Hungary’s April election, a calculation cited by Al Jazeera and Euronews as EU diplomats look for a workaround.

EU officials say talks will continue this week, and the European Commission has convened an Oil Coordination Group meeting to address the pipeline disruption, according to Euronews, while Reuters reported that diplomats are still pressing Budapest to drop its veto.

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