Revealed: how Orbán blocked €90bn loan for Ukraine
Hungary has blocked a €90 billion EU loan for Ukraine by refusing to vote in favour of one of the three pieces of legislation approved by the European Parliament that are required to release the funds – the regulation on amendments to the EU's long-term budget for 2021-2027.
Source: informed EU sources who requested anonymity, as reported by European Pravda
Details: Hungary refused to vote for the amendments to the EU's 2021-2027 Multiannual Financial Framework, thereby halting the process of providing Ukraine with €90 billion in EU funding.
To grant the €90 billion loan for 2026-2027, three EU regulations must be adopted: one on implementing enhanced cooperation to establish the Ukraine support loan for 2026 and 2027; one amending the Ukraine Facility; and one amending the 2021-2027 Multiannual Financial Framework.
All three have already been approved by the European Parliament and are at the final stage of adoption: the Council of the EU.
The plan had been for the documents to be adopted by the Council and signed in the European Parliament on 24 February, marking the anniversary of Russia's full-scale invasion of Ukraine.
The first two regulations can be adopted by a qualified majority of EU member states, but an amendment to the EU's long-term budget requires unanimous approval.
It was this budget amendment that Hungary blocked on Friday 20 February.
The other two documents have been approved at the level of the Committee of Permanent Representatives (Coreper) and are ready to be finalised and signed on Tuesday 24 February.
Background:
- Hungary has stated that it is blocking the €90 billion loan for Ukraine until Kyiv restores the transit of Russian oil to Europe via the Druzhba pipeline.
- The European Council agreed to provide Ukraine with a €90 billion loan for 2026-2027, based on EU borrowing on capital markets and backed by EU budget reserves. However, Hungary, Slovakia and Czechia have refused to take part in the scheme.
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