Briefly

Ultimately, the decision agreed at the European Council on 18 December 2025 did not become a final legal act because of the last vote in the Council of the EU — Hungary blocked one of the three documents required to launch a loan totaling €90 billion for Ukraine. The reason — Budapest's demand to restore the transit of Russian oil to Hungary via the "Druzhba" pipeline.

What exactly happened

According to the Financial Times and Politico, Hungarian authorities refused to support amendments to the EU's multiannual budget (2021–2027), which are a technical prerequisite for the release of the funds. Technically, the three legislative acts have already passed the European Parliament, but the consent of the Council of the EU is required for final adoption — and that is where the process stalled.

"We are blocking the EU loan to Ukraine of €90 billion until the transit of oil to Hungary via the 'Druzhba' pipeline is restored. Ukraine is blackmailing Hungary..."

— Péter Szijjártó, Hungary's Minister of Foreign Affairs

Why this matters for Ukraine — the economic and defence dimension

This sum is not symbolic: €30 billion was planned to be directed as macro-financial assistance (through the Ukraine Facility) — without these resources the risks to the budget and solvency rise as early as the first quarter of 2026. A further €60 billion was allocated for the procurement of armaments from manufacturers in Ukraine, the EU and EFTA countries; exceptions were envisaged for urgent needs if the required products are not available from those suppliers.

How it's financed and the risks in the mechanism

The package envisages joint EU borrowing on capital markets — with the Czech Republic, Hungary and Slovakia not participating in the repayments. Debt servicing was planned to be covered from the EU's annual budgets (approximately €1 billion in 2027 and about €3 billion annually from 2028). Repayment of the principal by Ukraine in the long term was made conditional on obtaining reparations from Russia — a mechanism that itself contains political and legal uncertainties.

"At the European Council meeting in December a unanimous political agreement was reached to provide €90 billion of resolute support... We expect all Member States to honour that political agreement."

— Balázs Ujvári, spokesperson for the European Commission

What partners can do and scenarios for Ukraine

There are several realistic tracks: diplomatic pressure on Hungary by EU leaders, seeking technical compromises (for example, guarantees regarding oil supplies) or parallel solutions — temporary credit lines from international financial institutions and bilateral partners. Political-legal steps in the Council of the EU are also possible, but they require time and political will.

What this means for the reader

If the package is indeed delayed, this is not only a matter of diplomacy: it is about money for salaries, social payments and defence procurement. The risk of a cash shortfall in 2026 is real if sources are not replaced quickly or temporary assistance from partners is not provided.

Conclusion

This is an example of when a technical decision in EU institutions becomes an instrument of foreign policy. Brussels stresses the leaders' agreement, Budapest is using an energy lever — and for Ukraine the task is at once simple and complex: to turn political support into operational financial solutions. Whether political declarations can be transformed into signed contracts is the key question in the coming weeks.