The European Union is facing a deepening crisis as Hungary's Prime Minister Viktor Orbán has blocked a critical €90 billion loan to Ukraine. Orbán claims the blockage, centered on the Druzhba oil pipeline, is a politically motivated attempt by Ukrainian President Volodymyr Zelenskyy to disrupt Russian oil transit. Orbán has framed the damaged pipeline as a matter of national sovereignty, refusing to yield.
The European Commission, led by Ursula von der Leyen, is seeking solutions to support Ukraine while ensuring energy security for member states. "We will deliver on the loan one way or the other," von der Leyen stated, indicating various options are being considered.
One potential solution involves Ukraine repairing the Druzhba pipeline, which Kyiv attributes to a Russian drone attack. "Accelerating" these repairs was publicly requested by von der Leyen. Ukraine has stated it is conducting repair works but faces ongoing Russian bombardment. Orbán has proposed a fact-finding mission to inspect the damage, an idea welcomed by the Commission but not yet confirmed.
As a fallback, the EU is promoting the Adria pipeline (JANAF) through Croatia, which has the capacity to supply Hungary and Slovakia. Croatia emphasizes its role in ensuring regional energy security. However, Hungary's energy major, MOL Group, has threatened legal action if denied transit of Russian crude through Adria, despite Croatia's stance on upholding EU sanctions.
Legal avenues are also being explored. Options include utilizing the principle of sincere cooperation under Article 4.3 of EU treaties, which compels member states to avoid jeopardizing Union objectives, or Article 327, relating to enhanced cooperation, which prevents excluded members from impeding its implementation.
Separately, a multi-billion-euro EU defense spending program, SAFE, has become entangled. With Hungary's substantial plan awaiting approval, some diplomats suggest Orbán may be using this as leverage for concessions. The Commission denies any link between the defense program and the pipeline dispute.