Hungary blocks €90 billion Ukraine loan and 20th Russia sanctions

Hungary blocked the European Union’s 20th package of sanctions on Russia and withheld ministerial sign-off on a €90 billion loan for Ukraine, imperiling funds Kyiv expected to begin receiving this spring and complicating plans by EU leaders to visit the country on the invasion anniversary. The veto took place at a meeting of EU foreign ministers in Brussels on Monday, Feb. 23, 2026, the day before senior officials were due in Kyiv to mark four years since the full-scale invasion.

Budapest tied its objection to the suspension of crude oil flows through the Druzhba pipeline, demanding that shipments resume before it would permit either the sanctions tightening or the loan formalization to proceed. In a letter to European Council President António Costa dated Feb. 23, Prime Minister Viktor Orbán described stalled deliveries as “an unprovoked act of hostility that undermines the energy security of Hungary.” Foreign Minister Péter Szijjártó told colleagues, “We’re going to stand firm on this. No‑one can mess with Hungary, no one can threaten our energy security,” and signaled he would block the vote.

The measures targeted by Hungary included a proposed ban on maritime services connected to exports of Russian crude oil and additional financial restrictions intended to limit Russia’s international payment capacity. The €90 billion facility, first agreed by EU leaders in December and approved by the European Parliament, still requires formal approval by EU ministers before funds can be disbursed to cover Ukraine’s budget and defense needs through the end of 2027.

The ministerial veto raised immediate alarm among EU officials and member states. “This is a setback and a message we did not want to send today,” EU foreign policy chief Kaja Kallas said in Brussels, adding that she doubted ministers would reach agreement and that “we shouldn't tie together things that are not connected to each other at all.” European Council President António Costa told Orbán he would “raise this matter directly” with Ukrainian President Volodymyr Zelensky and warned that “a decision taken by the European Council must be respected,” framing the veto as a breach of the principle of sincere cooperation.

The blockage creates a concrete fiscal risk for Kyiv. EU diplomats had expected the first installments of the loan in the coming months; the package is roughly €90 billion, or about $106 billion, and Ukrainian officials have warned that they need disbursements by spring to avoid a budget crunch. Diplomats in Brussels said the delay could force Kyiv to accelerate costly domestic financing or cut spending at a critical moment of sustained military pressure.

Reactions from member states were sharply critical. Sweden’s EU minister said the veto “makes me sick” and called it “reckless on the Hungarian side to use Ukraine as a political punching bag in their own national elections.” Luxembourg’s Xavier Bettel accused Orbán of acting as an election campaigner, saying the prime minister “is fully engaged in the election campaign”; Hungary is due to hold parliamentary elections on April 12.

The confrontation underlines persistent weaknesses in the EU’s consensus-based decision-making. Past episodes have seen Hungary delay measures before ultimately relenting after negotiations. Diplomats said the sanctions package could still pass and that some hoped the delay would prove a temporary snag rather than a derailment, but the immediate picture is of a union divided on both policy and principle as leaders travel to Kyiv to display united support.