EU leaders unable to persuade Hungary’s Orban to lift Ukraine loan block

A high-stakes push by European Union leaders at a Brussels summit fell short, leaving Hungarian Prime Minister Viktor Orban’s veto on a €90 billion EU loan for Ukraine firmly in place, officials said.

“They tried. They failed,” one European official said of the efforts by other EU leaders to convince Mr Orban at a summit in Brussels.

The loan was signed off by EU leaders in December, but Mr Orban — who keeps cordial ties with Russia and has clashed with Ukrainian President Volodymyr Zelensky — has stalled its rollout, citing a dispute over a war-damaged pipeline.

His reversal has infuriated counterparts, who warn Kyiv could run out of cash within weeks without fresh funds, and has rattled confidence in the European Council, the EU’s highest decision-making body.

A third European official, referring to Mr Orban, said: “Discussion ‌was tough and rough, but Viktor is still ⁠not budging.” A fourth official said: “Everyone is increasingly angry with Orban.”

The officials spoke on condition of anonymity to discuss confidential discussions between leaders.

Dutch PM says Orban’s veto is ‘unacceptable’

As leaders arrived at the summit this morning, many stepped up public pressure on Mr Orban.

“We have to be clear: Hungary’s veto is unacceptable, the extra support for Ukraine has to be delivered as quickly as possible,” Dutch Prime Minister Rob Jetten said.

“He’s using Ukraine as a weapon in his election campaign,and it’s not good,” Finnish Prime Minister Petteri Orpo said, referring ‌to the 12 April election in Hungary and accusing Mr Orban of betraying fellow EU leaders.

Mr Orban, a nationalist ally of US President Donald Trump, has long irritated mainstream EU politicians but, diplomats say, had not previously gone ⁠back on a deal agreed among EU leaders.

Frustration has deepened among officials because Mr Orban already secured an opt-out from covering ‌the loan’s costs, as did the Czech Republic and Slovakia.

Even so, Mr Orban signalled he had no intention ⁠of retreating.

“We are ‌waiting for the oil, the rest is fairy tales,” he said as he arrived at the summit, referring to the damaged Druzhba pipeline.

Officials say the Druzhba line, which carries Russian oil through Ukraine to Hungary and Slovakia, was hit in a Russian attack in January. Ukraine says repairs will take time; Hungary says it is already ready to operate.

Belgian Prime Minister Bart ⁠De Wever suggested the EU might have to wait until after Hungary’s election before the loan can proceed.

No other option, says Ukraine

With Russia’s war in Ukraine ⁠now in its fifth year, Kyiv is battling a surging budget deficit and has warned there are no alternative financing sources if the €90 billion package remains blocked.

The government spends most of its income on defence and relies on external support to cover pensions, public-sector salaries and other social programmes.

Absent swift approval, analysts say the government would be forced to cut spending and turn to printing money.

“This money is not charity; this is an investment in countering Russian aggression and maintaining peace in Europe,” Ukrainian Foreign Minister Andrii Sybiha said on X.

Attack on Iranian gas field ‘unacceptable’ – Taoiseach

Taoiseach Micheál Martin condemned as “unacceptable” Israel’s strike on Iran’s South Pars gas field, which in turn prompted Iran’s retaliation against Qatar’s Ras Laffan facility, the world’s largest liquefied natural gas hub.

He joined EU leaders in Brussels as Europe confronts a widening set of crises linked to the war involving Iran.

Mr Martin told reporters: “Any further attacks on energy infrastructure in the Middle East is unacceptable. It will have long-term repercussions for the energy market and all sides need to desist from such attacks.”

Asked if Europe should do more to help reopen the Strait of Hormuz, the Taoiseach said: “The most effective way to all of that is a de-escalation of this conflict. The Iranians have responsibilities.

“Their reckless and irresponsible attacks on the Gulf are absolutely unacceptable. They’re threatening EU citizens by those attacks, endangering them and people who have no involvement in this.

“But I think in all conflict situations, all actors have a role in terms of enabling a de-escalation and an end to the conflict.

“Europe has channels, and I think Europe will be ready to play a constructive role in endeavouring to resolve those outstanding issues.”

On energy costs, Mr Martin said the Government has tools within social protection to help households facing soaring bills, while cautioning about inflation risks.

“We will look at the full gamut of areas where we can give some support to people. What’s important is to point out the volatility of all of this.

“We’ve just had a significant escalation this morning in terms of gas prices because of further action in Qatar and elsewhere, so we’re very conscious of the volatility of this.”

He said the Government’s response would unfold over the short and medium term.

“We’ve got to look at the broader potential implications over the rest of the year. It is a very serious situation, and we’re very conscious of the impact this can have.

“Our immediate priority is to try and alleviate pressures on people, on families in particular, and then to make sure that we can do it in a way that doesn’t do any damage to the economy or doesn’t create any secondary effects in terms of inflation,” added Mr Martin.

Alongside the intensifying energy crunch, leaders in Brussels are also set to discuss continuing calls from the Trump administration for support to help reopen the Strait of Hormuz.

A map showing the Strait of Hormuz

Agenda items that were meant to dominate — boosting competitiveness and cutting energy costs — have been eclipsed by the US-Israel attack on Iran, though the issues are closely connected.

European leaders remain largely opposed to military backing for Donald Trump’s war of choice, not least because he did not consult European allies.

Even so, officials concede that distancing themselves from the fight is not a sustainable plan if the Strait of Hormuz stays shut and oil and gas prices keep rising.

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EU irritation is also mounting over Israel’s assault on Lebanon, which has displaced one million people internally; the European External Action Service last night urged Israel to halt operations there.

Officials have also noted the large barrages of missiles and drones Iran has fired at small Gulf states whose prosperity has rested on being islands of stability in a volatile region.

For these reasons and more, diplomats say Europe cannot simply wish the war away.

Equally pressing is Hungary’s continued obstruction of €90bn in loans for Ukraine.

Adding a personal edge, diplomats say Mr Orbán agreed to the loan in front of fellow leaders in December before later reneging.

Additional reporting Reuters