EU fails to pass Russian sanctions after Hungary blocks vote

The European Union failed Monday to pass new sanctions targeting Russia after Hungary unexpectedly blocked the measure on the eve of the fourth anniversary of the invasion of Ukraine. The blockade threatens Ukraine’s access to a 90 billion euro ($106 billion) loan intended to fund its military and economic needs for the next two years, as foreign ministers sought to finalize both packages ahead of the Feb. 24, 2022 invasion’s anniversary on Tuesday.

The failure exposes fractures within the 27-member bloc at a moment when major European powers are calling for increased pressure on Russia. Hungary’s demand—the resumption of Russian oil shipments through a pipeline damaged in January—reflects broader questions about the alliance’s ability to maintain sanctions discipline as the conflict approaches the four-year mark with no resolution in sight.

The Blockade

Kaja Kallas, the EU’s foreign policy chief, announced the failure Monday afternoon in Brussels. “This is a setback and a message we did not want to send today,” she said.

The 27-member bloc had sought to finalize its 20th sanctions package targeting Russian energy revenues and shadow fleet operations, along with a 90 billion euro ($106 billion) emergency loan to Ukraine. Both were intended to be approved before Tuesday’s fourth anniversary of Russia’s Feb. 24, 2022 invasion. An estimated 1.8 million Russian and Ukrainian soldiers have been killed, wounded, or reported missing in four years of war.

Hungary’s objection centered on a single demand: the resumption of Russian oil flowing through the Druzhba pipeline to Hungarian refineries.

The Pipeline Dispute

Crude shipments through the Druzhba have been interrupted since Jan. 27, when the pipeline was damaged. Ukrainian officials attributed the damage to Russian drone attacks, though the pipeline carries Russian oil through Ukrainian territory into Central Europe.

Both Hungary and Slovakia lost those supplies immediately. Both countries are EU and NATO members that have maintained and even expanded Russian energy imports, holding exemptions from an EU policy that otherwise prohibits buying Russian oil.

Hungarian Prime Minister Viktor Orbán made an unsubstantiated allegation that Ukraine is deliberately withholding the shipments. “No one has the right to put our energy security at risk,” Hungarian Foreign Minister Péter Szijjártó said ahead of Monday’s meeting. Orbán also accused President Volodymyr Zelenskyy of seeking to topple his government.

The European Response

Germany’s Chancellor Friedrich Merz marked what he called “four monstrous years of war” at a pro-Ukrainian event in Berlin Monday. “I appeal again to our European partners: Do not let up in your support, in our common support, for Ukraine,” Merz said. “We are standing at a crossroads that could decide on the well-being of our whole continent.”

In Paris, Emmanuel Macron met with Finland’s President Alexander Stubb. “Our determination to continue supporting Ukraine is unwavering,” Macron declared.

Stubb characterized Russia’s war effort as failing on every front. “It is a strategic failure,” he said. “It is also a military failure — he is now losing many soldiers — and, on top of that, it is an economic failure. Putin is not winning this war, but he cannot make peace.”

Several European leaders argued that escalating costs on Moscow is the only path to ending the conflict. “This war will only end when Russia no longer sees any sense in continuing it, when Russia can no longer expect more territorial gains, when Russia’s costs for this madness have simply become too high,” Merz said. “We must dry up Moscow’s war financing.”

The EU has provided Ukraine 194.9 billion euros ($229.8 billion) in financial assistance since the war began.

The Election Factor

Poland’s Foreign Minister Radosław Sikorski suggested that domestic politics may be driving Orbán’s stance. Orbán faces an election in less than two months—the greatest political challenge to his power since taking office in 2010. The opposition Tisza party leads in most polls.

“I would have expected a much greater feeling of solidarity from Hungary for Ukraine,” Sikorski said in Brussels. “The ruling party managed to create a climate of hostility towards the victim of aggression. And then it is now trying to exploit that in the general election. It’s quite shocking.”

Orbán has launched an aggressive anti-Ukraine campaign, accusing Tisza of conspiring with the EU and Ukraine to install what he called Monday a “pro-Ukraine government aligned with Brussels and Kyiv.”