Hungary Blocks New EU Sanctions and Loans Against Russia Amid Ongoing Conflict

On Monday, the Council of the European Union faced a setback as it failed to introduce new sanctions against Russia and approve a new loan, largely due to Hungary's opposition. The Council, which convenes representatives from European governments—specifically the foreign ministers in this instance—had hoped to finalize these measures by Tuesday, a date that marks the fourth anniversary of Russia's large-scale invasion of Ukraine in February 2022. However, a unanimous vote was essential for approval, and Hungary's dissent caused the proposals to be rejected. Hungary, known for its pro-Russian stance within the European Union, had already voiced its disapproval. The government contended that Ukraine has not made sufficient efforts to restore the flow of oil through the Druzhba pipeline, which connects Russia to Central Europe via Ukrainian territory and has been halted since January 27 due to a Russian drone attack. This pipeline is crucial for Hungary and Slovakia, as it continues to supply oil to these countries despite the backdrop of European sanctions, largely owing to their unique geographical situation. Slovakia's government, which also leans pro-Russian, has echoed Hungary's sentiments. In addition to the sanctions, the loan that was blocked amounts to €90 billion, initially designated for Ukraine by the European Commission, sourced from assets frozen across Europe due to Russia's actions. However, this option was placed aside primarily due to the opposition from Belgium, where most of these frozen assets are held. Subsequently, the Commission decided to ensure the loan through the issuance of joint debt by member countries. Estonian Prime Minister Kaja Kallas remarked that in light of Hungary's resistance to the use of common debt, EU institutions may reconsider utilizing the frozen assets for the loan. This development underscores the complexities of European unity in addressing Russian aggression, as diverging national interests continue to challenge cohesive action. The insufficient response may bring further consequences not only for Ukraine's ongoing plight but also for the EU's credibility in demonstrating solidarity against threats to regional stability. Related Sources: • Source 1 • Source 2 • Source 3