Ukraine-Hungary Oil Dispute Delays Critical EU Loan

Fri Mar 20 2026 22:36:13 GMT+0000 (Coordinated Universal Time)

A dispute over the Druzhba oil pipeline between Ukraine, Hungary, and Slovakia has stalled a €90 billion EU loan crucial for Ukraine's recovery. The disagreement has intensified, with Ukraine accusing Hungary of stalling repairs for political reasons.

A row between Hungary, Slovakia, and Ukraine over damages to the Druzhba oil pipeline has delayed a vital EU loan to Ukraine valued at €90 billion. As Ukraine works to restore oil flow following a Russian attack on the Brody oil hub, disagreements arise over repair timelines and political motivations. Hungarian officials claim Ukraine is stalling the process, complicating the energy situation ahead of Hungary's elections.

A bitter dispute pitting Hungary and Slovakia against Ukraine is holding up a crucial €90 billion 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 January 27.

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 a single country to block EU decision-making and highlights Hungary and Slovakia facing fuel shortages, as they have been reluctant to reduce their dependence on Russian oil since 2022.

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

Satellite images suggest that the Russian strike on January 27 harmed a key component—a large tank crucial for maintaining pipeline pressure. This tank, with a capacity of 75,000 cubic meters, reportedly smoldered for days following the attack.

Ukrainian energy expert Henadiy Ryabtsev notes that the damage is severe, impacting the overall functionality of the pumping station, potentially affecting pumps and pipeline systems. Ukrainian authorities insist they lack the necessary resources to expedite repairs amid ongoing military conflict.

In response to Ukraine's request for assistance, the EU has offered technical support and funding, with promises of immediate help from European experts. However, President Volodymyr Zelensky expressed hesitance about restoring the pipeline for Russian oil.

The Hungarian government has raised concerns over Ukraine's repair delays, alleging that political motives are influencing the situation. Prime Minister Viktor Orban, aligned with Moscow, has made negative comments regarding Zelensky, complicating the political landscape as Hungary approaches elections.

Despite ongoing tensions, Hungary has sought alternative crude supplies from non-Russian sources, but its refineries currently lack the capacity to process this new oil.