Hungarian Prime Minister Viktor Orbán is blocking a €90 billion EU loan to Ukraine until Russian oil transit via the Druzhba pipeline is restored.
Friendship Pipeline and Tensions with Ukraine
Hungarian Prime Minister Viktor Orbán stated on Tuesday that he would block the €90 billion EU loan for Ukraine until the transport of Russian oil to Hungary via the Druzhba pipeline through Ukraine is restored. Many gas stations in Hungary are currently implementing restrictions on fuel sales.
“The situation is simple: if there is no oil, there is no money,” Orbán stated in a recording published on Facebook. The Hungarian Prime Minister admitted that he consulted on this matter with the President of the European Council, Antonio Costa, and the Prime Minister of Slovakia, Robert Fico.
Criticism of Ukraine and Allegations of “Blackmail”
Orbán also criticized the denial of access to the Druzhba pipeline for a Hungarian delegation that traveled to Ukraine last week regarding the issue.
The Druzhba pipeline, which also supplies Russia with oil to Slovakia, was damaged in a Russian attack at the end of January. Authorities in Kyiv assure that they are repairing the pipeline, but the Orbán government maintains that Ukrainian authorities are deliberately delaying the resumption of transit, calling these actions “blackmail.”
EU Loan and Sanctions Blocked
Due to this situation, the Hungarian authorities announced a blockade of the €90 billion EU loan for Ukraine and blocked the adoption of the 20th package of sanctions against Russia.
Calls for Resolution and Fuel Crisis in Hungary
The President of the European Council, Antonio Costa, called on Orbán on Tuesday to agree to the EU granting a loan to Ukraine. Costa declared that he would cooperate with the Ukrainian side to resume oil supplies to Hungary and Slovakia via the Druzhba pipeline.
Hungarian media warned on Tuesday that the country’s oil reserves are at their lowest level in the decade, and most gas stations have introduced restrictions on fuel sales.
Fuel Price Caps and Concerns Over Supply
A fuel price cap has been in effect in Hungary since March 10th, set by the government at 595 forints per liter of gasoline and 615 forints per liter of diesel (approximately 6.5 zł and 6.7 zł respectively). The restriction applies only to vehicles with Hungarian license plates and registered in Hungary.
Holtankoljak, a portal monitoring fuel prices, assessed that the limits could threaten fuel supplies in the long run, as importers will not be interested in operating at a loss.
