Hungary’s veto halts EU sanctions against Russia

Hungary vetoed this Monday (24) the approval of a new round of European Union sanctions against Russia and blocked a €90 billion loan intended for Ukraine.

The decision prevented a joint announcement by the bloc on the eve of the fourth anniversary of the war and exposed new internal divisions in European policy towards the conflict.

The veto was formalized during a meeting of foreign ministers in Brussels, frustrating the European Union’s attempt to announce a coordinated tightening of measures against Moscow at a time considered sensitive by the bloc, given the prolongation of the conflict and the intensification of internal disputes over European strategy.

The requirement for unanimity among the 27 member states allowed Budapest to single-handedly block both the new sanctions package and financing for Kiev.

The package included additional restrictions on Russian officials, measures to make it more difficult to evade sanctions through third countries and proposals to limit maritime services linked to the transport of Russian oil, such as insurance and ship maintenance.

With the impasse, the existing sanctions regime remains in force, with no new penalties approved.

The blocking of the €90 billion loan also interrupted a political agreement signed in December, whose objective was to financially support the Ukrainian state throughout 2026. One of the legal bases of the operation requires unanimous approval from the bloc, which opened space for Hungarian obstruction.

Budapest justified the decision by conditioning its approval on the resumption of oil flow through the Druzhba pipeline, which crosses Ukrainian territory and supplies refineries in Hungary and Slovakia.

The pipeline has been out of operation since January 27th. Ukrainian authorities claim that infrastructure was damaged by Russian attacks and that repairs depend on minimum security conditions, an argument rejected by Budapest and Bratislava.

The dispute has again exposed Hungary and Slovakia’s energy dependence on Russian oil.

The two are the only refineries in the EU that still use Druzhba and have specific exemptions from European sanctions on imports of refined oil.

According to data from European research centers, Russian oil accounted for more than 90% of Hungarian energy imports last year.

Hungary’s decision provoked public criticism from other European governments, which pointed to harm to the bloc’s cohesion and diplomatic efforts around Ukraine.

Representatives from Germany, Poland, Sweden and the Baltic countries stated that the impasse highlights the limits of the decision-making model based on unanimity, especially on strategic issues.

On the Ukrainian side, authorities denied that the interruption of the pipeline was political in nature and argued that any complaints about energy supplies should be directed to Russia.

Kiev also informed the European Commission that it is studying alternative routes for oil transport while the damaged infrastructure is not fully restored.

With the veto, the European Union ended the week without advancing new sanctions against Moscow or guaranteeing new financial resources for Kiev, at a time of intensifying fighting and uncertainty about the bloc’s ability to maintain a unified response to the conflict.