Hungary, Slovakia Block New EU Sanctions On Russia

The European Union has failed to agree on more sanctions on Russia, that were planned to be in place by the fourth anniversary of the Kremlin's full-scale invasion of Ukraine.

The bloc's foreign ministers, meeting in Brussels on February 23, failed to clinch a deal following opposition from Hungary and Slovakia.

"I really regret that we didn’t achieve agreement today, considering that tomorrow is the sad anniversary of the start of the war, because we need to send a strong signal to Ukraine that we keep on supporting Ukraine -- and also put strong pressure on Russia,” said EU foreign policy chief Kaja Kallas.

She also said that work on the sanctions package, the EU's 20th since Russia's full-scale invasion in 2022, would continue.

The Hungarian and Slovak vetoes are not related to any of the proposed restrictive measures but are linked to a halt in Russian oil deliveries from the Soviet-era Druzhba pipeline that goes to the two Central European states via Ukraine.

What Was Blocked?

The sanctions would include a maritime services ban related to Russian petroleum products that would prohibit EU-based companies from providing services to any vessel transporting these products from Russian ports.

There were also measures against Moscow's so-called shadow fleet used for circumventing sanctions and against third countries helping Moscow do so.

In addition to there being no agreement on the sanctions package, there was also no breakthrough in overcoming an additional Hungarian veto in approving a 90-billion-euro EU loan to Ukraine for 2026-2027 that was tentatively agreed by the bloc's leaders in December.

A readout from the ministerial meeting that RFE/RL received said there was "broad frustration among the 25 other EU member states." Several ministers openly questioned Hungary's motive, it added, suggesting the entire move was about April's parliamentary election in the country rather than oil.

Several recent polls indicate that the ruling Fidesz party is poised to lose the vote.

Druzhba 'Blackmail'

The halt in oil flow through the Druzhba pipeline occurred on January 27, when Kyiv said a Russian drone strike hit pipeline equipment in western Ukraine. Both Slovakia and Hungary have, however, accused Ukraine of not wanting to repair the damage.

The two landlocked countries still depend on Russian oil and have secured exemptions from EU sanctions that otherwise ban imports from the country.

Hungarian Foreign Minister Peter Szijjarto tweeted that "there is no technical or operational reason preventing the restart of oil transit to Hungary and Slovakia via the Druzhba pipeline. It's therefore obvious that Ukraine's decision is purely political, an attempt to pressure Hungary in coordination with Brussels and the Hungarian opposition. We will not give in to blackmail."

Slovak Prime Minister Robert Fico also threatened over the weekend to cut off emergency electricity supplies to Ukraine unless Druzhba became operational on February 23.

Slovakia has contributed to nearly a fifth of Ukraine's electricity imports in January as Russia has pounded the war-torn's country's energy infrastructure throughout a bitter winter.

Ukrainian Foreign Minister Andriy Sybiha responded in a tweet, saying, "Statements from Budapest and Bratislava are provocative, irresponsible, and threaten the energy security of the entire region."

Anna-Kaisa Itkonen, a European Commission spokeswoman, said during a media briefing in Brussels that "Russia destroyed the Druzhba pipeline. Our priority is the energy security of our member states. Ukraine has committed to repairing the pipeline and the decision on the timeline is for them to make."

She also confirmed that an oil coordination group bringing together energy experts from the bloc would meet on February 25 "to take stock of the situation."

Alternative Routes For Oil

Ahead of the Brussels talks, news emerged overnight that a Ukrainian drone hit an oil pumping station near the village of Kaleikino in Tatarstan, Russia, which is a major hub for the Druzhba system where oil from Siberia, Tatarstan, and Bashkortostan is mixed.

But Hungary and Slovakia have alternatives to Druzhba.

Hungarian energy giant MOL announced last week it would release about 1.8 million barrels of crude oil from its strategic reserves to make up for any shortfalls in supply. The Hungarian Hydrocarbon Stockpiling Association noted that, in any case, Hungary had as of the end of January enough crude oil and petroleum product reserves to cover 96 days.

To secure more oil, Budapest recently requested that Croatia supply it via the Adria pipeline with JANAF, the Croatian pipeline operator.

Ihor Chalenko, head of the Center for Analysis and Strategies think tank in Kyiv, told Current Time that the issue was political rather than technical.

"What is happening now is merely an attempt to use the circumstances to effectively block direct aid to Ukraine in the amount of 90 billion euros ($105 billion) and to block increased pressure on the Russian aggressor. This has nothing to do with the economic situation in Hungary and Slovakia," he said.

Hungary Blocks 90-Billion-Euro Loan

The foreign ministers' meeting was also rocked by a letter from Hungarian Prime Minister Viktor Orban to European Council President Antonio Costa dated February 23.

In the letter, seen by RFE/RL, Orban outlines why he is now blocking an emergency loan to Ukraine even though Hungary, alongside Slovakia and the Czech Republic, got an exemption from contributing to it at an EU summit in December.

"Recent developments have forced me to reconsider my position. Since mid-February Ukraine refuses to restore the transfer of crude oil via the Druzhba pipeline to Hungary due to political considerations and in violation of its international obligations. This is an unprovoked act of hostility that undermines the energy security of Hungary," the letter reads.

Despite the opt-out, unanimity among all EU member states is needed to amend a regulation that would allow Brussels to use the bloc's common budget to lend the 90 billion euro to Kyiv.

The European Parliament has already voted in favor of the loan and the assumption until recently in the bloc was that member states would give the necessary green light imminently to make sure that the money goes to Kyiv before it faces a budgetary shortfall in April.