EU Sanctions Package stalled by Hungary

On the 4th anniversary of the war in Ukraine, the European Union is still trying to sanction Russia enough to initiate legitimate diplomatic discussion. The target for this round of sanctions is much tougher than previous ones as the package includes targets of the energy, financial services and trade sectors. The European Union released a statement on 6 February 2026 on how they are targeting each sector. When it comes to energy, they want to implement a full maritime services ban for Russian crude oil. The shadow fleet system that Russia has set up to avoid sanctions can be read here from my previous article. For the financial services, the goal is to curtail the alternative payment channels to fund economic activity. This will include sanctions on regional banks as well as cryptocurrency platforms to avoid circumvention of illegal trade. As for the trade sector, the need to tighten export restrictions is introduced with new bans on goods and services. Some of the exports range from rubber to tractors and cybersecurity services that are estimated to be worth over €360 million. The 20th sanctions package would also include an introduction of new bans including metals, chemicals and critical minerals, not yet under sanctions, worth over €570 million. Applying this much economic pressure to Russia would significantly impact how they are able to carry out their goals in Ukraine. Unfortunately, there is an election in Hungary coming up and political survival is crucial for Vikor Orbán. 

The 20th sanction package also included a €90 billion loan for Ukraine, which was agreed to in December 2025. Hungary, Slovakia and the Czech Republic agreed to the loan on condition that they would not be liable for interest costs or repayment of the loan and would be backed by the other 24 EU countries. On 20 February, the Hungarian minister of foreign affairs and trade Péter Szijjártó upended the sanctions package and announced the following via social media:

The argument that precipitated this statement is due to a disruption in oil transport. The Druzhba pipeline that runs through Ukraine stretches 4,000 kilometers from eastern Russia to Central Europe. It supplies Russian crude oil to Hungary and Slovakia and has been damaged. Ukraine says it was a Russian attack and they are unable to reopen, but Hungary and Slovakia are accusing Ukraine of deliberately restricting oil supplies. The accusations towards Kyiv are calculated as Orbán is known to weaponize anti-Ukraine sentiment ahead of April’s national election. His political party, Fidesz, are currently trailing the opposition, Tisza, in the polls by a wide margin. By using the pipeline issue and the uncertainty of energy security, it seems that the Orbán government is attempting to justify blocking the EU’s 20th sanctions package against Russia. As with all major policies in the European Union, there is a requirement for unanimous support. At the same, many people believe that there are alternatives to the oil shortage. Radio Free Europe/ Radio Liberty reported that : “To secure more oil, Budapest recently requested that Croatia supply it via the Adria pipeline with JANAF, the Croatian pipeline operator.” With alternative access to oil available to Hungary until the Druzhba pipeline is restored, this move by Orbán is seen as a political move to subvert the Ukrainian war efforts as well as the EU’s support. There are reports from Politico that Orbán is attempting to “pressure the European Commission into approving its application for a €16 billion defense loan” through the EU’s SAFE program. The political maneuvers coming from Budapest can also be seen as a way to keep good relations with Russia and perhaps push Ukraine to compromise on peace talks, ultimately helping the Trump administration negotiate an end to the war.