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Hungary maintained its veto on new European Union sanctions against Russia and a $106.11 billion financial package for Ukraine on February 23, 2026, delivering a blow to European unity just days before the fourth anniversary of Russia’s full-scale invasion.

The decision has intensified tensions within the EU and exposed deep divisions over energy dependence and support for Kyiv. The immediate trigger for the standoff is the suspension of Russian oil flows through the Soviet-era Druzhba pipeline.

Shipments to Hungary and Slovakia have been cut off since January 27, 2026. Both countries rely heavily on Russian crude delivered through this route and operate the EU’s only two refineries still dependent on Druzhba supplies.

Ukraine says the oil stoppage was caused by Russian attacks on pipeline infrastructure in January and insists repairs are underway. However, Hungary and Slovakia accuse Kyiv of deliberately halting deliveries. Hungary has made clear it will block further EU sanctions on Moscow until oil supplies resume.

Slovakia followed Hungary’s move by announcing it would refuse emergency electricity assistance requests from Ukraine starting Monday, unless oil flows restart. The dispute marks one of the most serious confrontations between the three neighboring countries since the war began.

Further escalating the situation, Ukraine reported that its drones struck a Russian pumping station in the Tatarstan region overnight. The facility is part of the Druzhba network designed to transport Russian oil to Eastern Europe through Ukrainian territory.

EU Leaders Express Frustration

European Union’s Foreign Policy Chief Kaja Kallas acknowledged the failure to reach an agreement on the 20th sanctions package. “We have not reached an agreement on the 20th sanctions package,” she said.

“This is a setback and a message we didn’t want to send today, but the work continues.”
Antonio Costa urged Hungary’s prime minister to respect the previously agreed $106.11 billion loan arrangement intended to help Ukraine meet urgent military and financial needs.

However, Viktor Orbán responded in a letter stating that Ukraine could restore oil flows if it chose to do so. “I am not in a position to support any decision whatsoever favorable to Ukraine until they return to normality,” he wrote.

Poland’s prime minister described Hungary’s actions as “political sabotage,” reflecting broader frustration among EU member states that view Budapest’s stance as undermining collective European strategy.

The dispute threatens to overshadow a planned display of European solidarity in Kyiv. Several EU leaders are expected to visit the Ukrainian capital to mark the fourth anniversary of Russia’s invasion, including European Commission President Ursula von der Leyen.

Tonight, we adorn our European institutions with the colours of Ukraine.

Two colours, carrying the spirit of courage.
⁰Two colours, burning with resistance.

Four years into Russia’s full-scale war, these colours are shining brighter than ever

Slava Ukraini. pic.twitter.com/Ctu4bPYOwI

— Ursula von der Leyen (@vonderleyen) February 23, 2026

European governments have significantly increased assistance to Ukraine after the United States ended direct military aid last year. However, Hungary and Slovakia, seen as the EU’s most Moscow-friendly members, have repeatedly slowed or blocked key initiatives.

Both governments maintain strong energy ties with Russia and argue that national economic interests must be protected.

Frontline Developments and Civilian Toll

On the battlefield, Ukraine claimed a rare frontline advance, reporting that its forces have recaptured approximately 400 square kilometers in the south since late January. President Volodymyr Zelenskyy insisted that Ukraine is “definitely not losing.”

At the same time, Russian forces continue to target Ukrainian cities. Drone strikes in the south killed two people, and sustained attacks on energy infrastructure during the winter have left millions without electricity. Cities including Kyiv, Odesa, and Kharkiv have been heavily affected by missile and drone bombardments.

Zelenskyy rejected Russian demands that Ukraine hand over the entire Donbas region, including areas not fully controlled by Moscow. Speaking publicly, he said that giving up Donetsk oblast would mean “abandoning hundreds of thousands of our people who live there.”

He added that President Vladimir Putin had “already started World War III,” raising concerns about broader regional escalation.

Diplomatic Efforts Continue

Another round of peace talks is expected to take place in Geneva later this week. Ukrainian officials acknowledged that negotiations, brokered by the United States, “aren’t going smoothly,” but insisted progress is being made. Russia has not modified its original demands, which include full control of the Donbas territory.

European leaders reiterated their support for Kyiv despite internal disagreements. Germany’s chancellor called the anniversary “four monstrous years of war” and urged partners not to reduce their support. France’s president described his country’s commitment as “unwavering,” while Finland’s leadership said Russia “is not winning the war” but is not ready to compromise.

Reconstruction Costs Climb

A new report from the World Bank estimates that Ukraine will require $588 billion for reconstruction following the destruction caused by Russia’s 2022 invasion. This figure represents a 12 percent increase from last year’s estimate. The frontline regions of Donetsk and Kharkiv are expected to need the largest investments, while Kyiv alone would require $15 billion for recovery.

Hungary’s veto highlights the fragility of EU consensus at a critical moment. The bloc’s sanctions policy requires unanimous approval, giving individual member states significant leverage. By linking sanctions to oil supplies, Budapest has effectively tied European foreign policy to energy infrastructure disputes.

The standoff also demonstrates the ongoing strategic importance of pipelines and energy security in shaping political decisions. While much of Europe has reduced dependence on Russian energy since 2022, Hungary and Slovakia remain exposed due to refinery configurations and supply chains built over decades.

As the war enters its fifth year, the EU faces a dual challenge: maintaining unity in support of Ukraine while managing economic vulnerabilities among member states. The coming weeks will test whether Brussels can restore consensus or whether energy disputes will continue to fracture Europe’s collective response to Russia.