Hungary's Disloyalty: Veto on 90 Billion Euro Loan for Ukraine

Hungary's decision to veto a €90 billion loan for Ukraine has been sharply criticized by other EU countries, which see it as an act of disloyalty.

The European Union's top leadership has sharply accused Hungary of violating the bloc's principle of sincere cooperation after the country unexpectedly decided to veto a 90 billion euro loan for Ukraine over a non-energy dispute.

The financial aid program was approved in December by heads of state and government after arduous negotiations. It was in the final stages of the legislative process, with the first disbursement expected in early April.

Hungary, Slovakia and the Czech Republic secured an exemption from the scheme.

“It is truly regrettable,” High Representative Kaja Kallas said at the end of a meeting of foreign ministers on Monday. “It is not in line with the sincere cooperation clause that we have in the (EU) treaties.”

Separately, António Costa, the president of the European Council, told Hungarian Prime Minister Viktor Orbán that decisions adopted by the 27 leaders "must be respected."

"When leaders reach a consensus, they are obliged to implement their decision. Any breach of this commitment constitutes a violation of the principle of sincere cooperation," Costa said in a letter sent to Orbán on Monday and seen by Euronews.

“No member state can be allowed to undermine the credibility of decisions taken collectively by the European Council.”

Speaking in Paris, French President Emmanuel Macron echoed this sentiment.

"I am confident when I say that I am determined, because I know that the political commitments and promises made at the last European Council will be respected. It cannot be otherwise," Macron said.

The dispute concerns the Soviet-era Druzhba pipeline, which runs through Ukraine and brings Russian crude to Hungary and Slovakia thanks to a sanctions exemption. The pipeline was severely damaged in late January by a drone attack attributed to Russia. However, both Hungary and Slovakia have blamed Ukraine for the subsequent disruption of supplies.

“Since mid-February, Ukraine refuses to restore the transfer of crude oil via the Druzhba pipeline to Hungary due to political considerations and in violation of its international obligations,” Orbán wrote in his letter to Costas.

"This is an unprovoked hostile act that undermines Hungary's energy security."

Kiev has said emergency repair work is ongoing but warned that incessant Russian bombing is complicating efforts. It has also proposed creating an alternative route through the Odessa-Brody pipeline to bring in sea-borne crude oil.

"The Hungarian and Slovak ultimatums should be addressed only to the Kremlin. These two countries cannot hold the entire EU hostage. We call on both to engage in constructive cooperation and responsible behavior," Ukrainian Foreign Minister Andriy Sybiha said.

'Exploitation of unanimity'

In addition to the 90 billion euro loan for Ukraine, Hungary has also vetoed a new round of sanctions against Russia, which Brussels wanted to have approved by February 24, the fourth anniversary of the full-scale invasion.

The anger was palpable on Monday as foreign ministers, wearing pins in the colors of the Ukrainian flag, entered the meeting.

"I am surprised by the Hungarian stance," said Johann Wadephul of Germany.

"I don't think it's right if Hungary betrays its fight for freedom and European sovereignty. So we will address the Hungarians again with our arguments, in Budapest, but of course also here in Brussels, so that they reconsider their position."

Speaking to Euronews, Lithuania's Kęstutis Budrys called for a review of voting rules to avoid what he described as "exploitation of the unanimity principle".

Hungary has blocked one of the three elements of the 90 billion euro loan that changes EU budget rules and depends on unanimous consent. The other two regulations, which set out the structure and conditions of the aid, were adopted on Friday.

"We can't be stopped by these vetoes every time," Budrys said.

Meanwhile, Sweden's Maria Malmer Stenergard said the double Hungarian veto was a "disgrace" and a "shame".

"We need to make sure that Ukraine gets that money. About two-thirds of their budget needs for two years will be covered by this loan, and they need it, so we need to find a way," Stenergard told Euronews.

Regarding the timing of Hungary's decision, the Swedish minister believes it could be linked to the general election in April, a key vote in which Orbán is trailing in the polls by double digits.

“I don't think it's a coincidence that the election is approaching,” she said.

Asked about this possible connection, Kallas treaded more cautiously, saying that discussions must continue to find a workable solution. The European Commission has called a meeting of the Oil Coordination Group for Wednesday.

"We know that there will be elections in Hungary, but it is very difficult for me to understand, considering and knowing the history of Hungary, that the people of Hungary would actually support not helping the people of Ukraine who are in need," Kallas said.

“I find it very hard to believe that it will bring you any bonus points in exemptions.”

The Geopost