Hungary Blocks New EU Sanctions on Russia & €90bn Ukraine Aid

by Chief Editor

Hungary’s Veto Threatens EU Unity on Russia Sanctions and Ukraine Aid

A deepening rift within the European Union has emerged as Hungary blocked the adoption of a 20th package of sanctions against Russia, and threatened to veto a crucial €90 billion aid package for Ukraine. The move, timed near the fourth anniversary of Russia’s invasion of Ukraine, has sparked outrage among EU officials and raised questions about the bloc’s ability to maintain a united front against Moscow.

The Petrochemical Leverage: Hungary’s Demand

At the heart of the dispute lies Hungary’s demand for the resumption of Russian oil deliveries via the Druzhba pipeline. Budapest claims Ukraine is preventing the reopening of the pipeline, damaged by what Kyiv asserts were Russian strikes. Hungary and Slovakia accuse Ukraine of using the issue to exert pressure, particularly regarding their reluctance to support Ukraine’s EU membership bid. The Hungarian Foreign Minister, Péter Szijjártó, stated Hungary will veto sanctions until oil transit resumes.

EU Response and Growing Frustration

The EU’s High Representative for Foreign Affairs, Kaja Kallas, described the Hungarian veto as a “reversal” and a message the EU didn’t want to send. French President Emmanuel Macron has urged Europe to “move forward” with both sanctions and the aid package. However, the situation highlights the challenges of achieving unanimous agreement among 27 member states, particularly when national interests diverge. German officials have expressed “astonishment” at Hungary’s position, whereas Estonia warned that failing to sanction Russia would be a win for Moscow.

Broader Implications: Aid Package at Risk

The threatened veto extends beyond sanctions. Hungarian Prime Minister Viktor Orbán has also indicated he will block the proposed €90 billion aid package for Ukraine, approved in principle in December. This financial assistance is considered vital for Ukraine’s economic stability and its ability to continue resisting Russian aggression. The potential loss of this funding could severely hamper Ukraine’s war effort and reconstruction efforts.

The Druzhba Pipeline Dispute: A Closer Look

The Druzhba pipeline, meaning “friendship” in Russian, is a major artery for Russian oil exports to Europe. While some countries have phased out Russian oil imports, Hungary and Slovakia remain reliant on supplies via this route. Ukraine maintains the pipeline was damaged by Russian attacks in January, and its continued closure is a consequence of Russia’s actions. Slovakia claims the pipeline has been repaired, but Kyiv continues to keep it shut.

Future Trends and Potential Scenarios

The Rise of Bilateral Energy Deals

Hungary’s stance underscores a growing trend of individual EU member states prioritizing their own energy security, even if it means diverging from collective EU policy. One can expect to see more bilateral energy deals between EU nations and non-EU suppliers, potentially weakening the EU’s collective bargaining power and its ability to impose unified sanctions.

Increased Geopolitical Fragmentation

The situation also points to a broader pattern of geopolitical fragmentation within Europe. National interests are increasingly clashing with the desire for a unified foreign policy, creating opportunities for external actors like Russia to exploit divisions. This fragmentation could hinder the EU’s ability to respond effectively to future crises.

The Debate Over EU Membership Criteria

Hungary’s reluctance to support Ukraine’s EU membership bid, linked to the pipeline dispute, raises questions about the criteria for EU accession. The EU may need to reassess its membership requirements to ensure that new members are fully committed to the bloc’s core values and policies. This could lead to a more cautious approach to future enlargement.

Potential for Institutional Reform

The deadlock over sanctions and aid could spur discussions about reforming the EU’s decision-making processes. Some proposals include moving away from unanimous voting requirements in certain areas, such as foreign policy, to allow for faster and more decisive action. However, such reforms would require treaty changes and face significant political hurdles.

FAQ

Q: Why is Hungary blocking the sanctions?
A: Hungary is demanding the resumption of Russian oil deliveries via the Druzhba pipeline, which it claims Ukraine is preventing.

Q: What is the Druzhba pipeline?
A: It’s a major pipeline used to transport Russian oil to several European countries, including Hungary and Slovakia.

Q: What is the impact of the blocked aid package?
A: The €90 billion aid package is crucial for Ukraine’s economic stability and its ability to continue resisting Russian aggression.

Q: Could the EU bypass Hungary’s veto?
A: It’s unlikely without treaty changes, as most EU foreign policy decisions require unanimous agreement.

Pro Tip

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Want to learn more about the EU’s response to the Ukraine conflict? Explore more articles on BFM TV.

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