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EU faces Hungarian veto as sanctions and €90bn Ukraine loan stall

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EU foreign ministers gathered in Brussels as Germany, France and other capitals pledged unwavering backing for Kyiv ahead of the war’s fourth anniversary. Diplomats raced to seal a fresh sanctions package and a massive loan for Ukraine, but Hungary warned it would veto both measures. Chancellor Friedrich Merz urged partners not to abandon support, framing the moment as a test for Europe’s unity.

The 20th sanctions round targets Russia’s shadow fleet and energy revenues, yet Hungarian officials said they would block the plan unless Russian oil flows to Budapest resume. Budapest claims Kyiv has created a “Ukrainian oil blockade” after drone attacks crippled the Druzhba pipeline on Jan. 27. The threatened veto also covers a 90 billion euro loan meant to fund Kyiv’s military and economic needs for two years.

Orbán, facing a national election in April, has turned Ukraine into a political football, accusing the opposition of colluding with Brussels. While Estonia and Poland press for unanimity, the EU has already disbursed €194.9 billion to Kyiv and seeks to choke Moscow’s war financing. Without a compromise, the loan remains stalled, jeopardising Ukraine’s near‑term funding.