Media: EU begins to understand that Orbán may have another condition to unblock €90bn Ukraine package

EU officials believe Hungarian Prime Minister Viktor Orbán may have another condition for unblocking the allocation of a €90 billion loan to Ukraine.

As reported by Politico, EU officials appear to be gaining a clearer understanding of what might prompt Orbán to lift his veto on the €90 billion EU loan for Ukraine.

In a letter to European Council President António Costa sent on Thursday 26 February, the Hungarian prime minister hinted that he could step back if the EU formally assesses the damage caused to a key oil pipeline in Ukraine. Some EU officials hope that a commitment to address the issue of the Druzhba pipeline could help unblock the loan.

However, two diplomats directly involved in the discussions told Politico that Budapest's manoeuvring might be broader. According to those diplomats, Hungary may continue to block sanctions until its own request for a €16 billion defence loan is approved under the SAFE instrument.

Diplomats told Politico that Budapest's pressure campaign is primarily aimed at speeding up the European Commission's approval of its SAFE request. They suggest that the defence loan could be the decisive factor for Orbán, despite his public claims about an EU-Ukraine conspiracy to deprive Hungary of access to cheap Russian oil supplies.

Meanwhile, EU officials continue to discuss alternative ways of dealing with Orbán behind the scenes.

An "obscure clause" seems to have been identified by the Council's legal services – Article 327 of the EU Treaties.

It states EU members not participating in enhanced cooperation (which is the legal basis for the loan) "shall not impede its implementation by the participating Member States".

On 26 February, Orbán wrote an open letter to Ukrainian President Volodymyr Zelenskyy, accusing him of pursuing an "anti-Hungarian policy".

On 25 February, the Hungarian prime minister also claimed that Ukraine poses a threat to Hungary's energy system and announced that troops will be deployed to protect energy infrastructure.