Poland’s premier criticizes Hungary over blocking $106B EU loan to Ukraine

Poland's Prime Minister Donald Tusk on Saturday sharply criticized Hungary for blocking a €90 billion ($106 billion) EU loan package intended to support Ukraine's military and economic needs.

The financial aid package, agreed to by EU leaders in December, was meant to provide Kyiv with budget support and assistance for 2026-2027. The arrangement was approved by the European Parliament and plans to finance the funds through EU borrowing on capital markets backed by the union's budget — without direct contributions from Hungary, Slovakia, or the Czech Republic.

However, Hungary has withheld its approval of a key amendment to the EU's long-term budget framework, effectively blocking final adoption of the loan. Hungarian Foreign Minister Peter Szijjarto said Budapest will oppose the loan "until oil transit to Hungary via the Druzhba pipeline resumes," accusing Ukraine of failing to reopen the route following damage from a Russian drone attack. Hungary claims the stoppage violates the EU-Ukraine Association Agreement, a charge Kyiv denies.

Tusk, whose government backed the support package, criticized Hungary's veto as a threat to European unity and to Ukraine's ability to sustain its defense against Russian aggression. In previous statements after the December EU summit, he framed the loan — financed from so-called "headroom" in the EU budget — as crucial financing that would not burden Polish taxpayers, emphasizing that Ukraine would ultimately repay the loan when reparations from Russia are available.

The dispute has raised concerns in Brussels that unanimity requirements for certain budget decisions could empower individual member states to block collective initiatives, even when broad support exists among others. The European Commission has stressed it expects all countries to honor the political agreement underpinning the loan, underscoring the importance of unity in maintaining support for Ukraine.

Hungary's move also comes amid heightened domestic politics — Prime Minister Viktor Orban's government faces elections in April, and its resisting EU sanctions and broader aid to Kyiv aligns with Russian interests. Other EU capitals fear that prolonged blockages could delay or undermine financial assistance at a critical time for Ukraine's war effort.