Pipeline Dispute Between Ukraine and Hungary Jeopardizes EU Financial Aid

Fri Mar 20 2026 22:43:28 GMT+0000 (Coordinated Universal Time)

Ongoing tensions between Hungary and Ukraine over the Druzhba oil pipeline are delaying a vital €90bn EU loan to Ukraine. Hungary accuses Kyiv of political stalling while Ukraine cites damage from Russian attacks.

A significant conflict has emerged as Hungary and Slovakia are at odds with Ukraine over the Druzhba oil pipeline, jeopardizing a €90 billion EU loan crucial for Ukraine's recovery. With oil flow halted due to damage from a Russian strike, both nations have exchanged accusations about the causes and responsibility for the situation. This dispute not only complicates Hungary and Slovakia's fuel supplies but also highlights vulnerabilities in EU decision-making processes.

A bitter dispute pitting Hungary and Slovakia against Ukraine is holding up a crucial €90bn (£77.95bn) EU loan to Ukraine.

No oil has flowed through the Druzhba (Friendship) pipeline, from Russia to Hungary and Slovakia across Ukraine, since the major oil hub at Brody, in western Ukraine, was damaged in a Russian attack on 27 January.

While Ukraine argues that it will need six more weeks to repair the damage and restore the oil flow, Budapest accuses Kyiv of stalling as revenge for Hungary's pro-Russian and anti-Ukrainian position.

The dispute underlines the ability of one or two countries to block EU decision making. It also shows Hungary and Slovakia facing fuel problems, because they refused to follow the lead of others and wean themselves off Russian oil since 2022.

The Brody pumping station in Ukraine's western Lviv region is crucially important for the transit of Russian oil to Hungary and Slovakia.

Satellite images obtained suggest that the Russian strike on 27 January damaged a key part - a huge tank used to store oil necessary to keep the pipeline pressurized and functioning.

The Hungarian government has accused Ukraine of delaying the restoration of the oil flow for political reasons, with Hungary’s Prime Minister Viktor Orban maintaining close ties with Moscow.

In the meantime, Hungary has begun receiving non-Russian seaborne Brent crude but faces challenges as its refineries lack the necessary equipment to process it effectively.