Brussels seeks face-saving deal with Orbán over Ukraine funds

According to Politico, EU leaders are seeking a way to allow Hungarian Prime Minister Viktor Orbán to step back from blocking further financial support for Ukraine without triggering an open legal confrontation between Brussels and Budapest. Three diplomats told the publication that he could be offered a political ‘victory’ enabling him to save face ahead of domestic elections.

One option under discussion is a commitment to safeguard oil supplies through the Druzhba pipeline, which has been affected by Russia’s war against Ukraine. Last weekend, Orbán threatened to block a $90 billion loan for Kyiv and a 20th sanctions package unless oil deliveries to Hungary and Slovakia were secured.

Ukraine could face a funding shortfall as early as April, a politically sensitive month in Hungary.

European Council President António Costa warned in a letter that Budapest risked breaching the principle of sincere cooperation, potentially opening the door to proceedings under Article 7 of the Treaty on European Union and the suspension of voting rights. Several diplomats, however, argued against escalating the dispute legally and instead called for a political compromise.

They pointed to an arrangement reached in October last year, when Slovakia withdrew its veto after language on continued Russian energy supplies was incorporated into the European Council’s conclusions.

There has also been discussion of sending a European Union delegation to inspect the pipeline or making use of frozen Russian assets. The possibility was raised by the EU’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas. At the same time, leaders emphasised that member states are expected to respect decisions already taken.

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