Magyar calls on Orbán to lift veto on Ukraine loan before his exit

Péter Magyar, the winner of the Hungarian elections and the country’s incoming prime minister, has called on Viktor Orbán to lift his controversial veto on the €90 billion loan for Ukraine before vacating his office in May.

The financial scheme was agreed by the 27 leaders of the European Union in December, but Orbán used his veto in mid-February to block the legal procedure over an unrelated dispute with Kyiv involving the Druzhba pipeline, which carries low-cost Russian oil.

The spat featured prominently in Orbán’s failed re-election campaign.

“Viktor Orbán accepted the loan (in December), and he said during the election campaign that as long as there is no oil, there is no money,” Magyar said on Wednesday during his first interview with the Hungarian public broadcaster since 2024.

Magyar referred to the words of Ukrainian President Volodymyr Zelenskyy, who this week said the pipeline could be repaired “not completely, but enough to function” by the end of the month. The infrastructure was badly damaged in January by Russian drones.

The restoration of flows will be “very important for our country”, Magyar said, signalling his desire to continue purchases of Russian oil in the near term.

“In the next 30 days, the Orbán government is still operating as an executive government,” Magyar added.

“So I think, if Druzhba restarts, Viktor Orbán will release his technical veto.”

Only one element of the €90 billion loan, a regulation amending the EU budget that requires unanimity, is still on hold. In principle, Orbán could order his ambassador in Brussels to lift the veto at any time and complete the legislative procedure.

However, it is far from clear if Orbán, who made Zelenskyy the nemesis of his campaign, will allow this to happen before leaving office sometime in May.

The European Commission is quickly laying the groundwork to make the first transfer to Kyiv as soon as the deadlock is broken. The executive has a reserve of borrowed cash at hand, so it is just waiting for the legal blessing to go ahead.

On Tuesday, the Commission said the offer to send an external inspection to the Druzhba pipeline and pay for the repair with EU funds, which were made to placate Orbán, was still applicable after the election. (The inspection has not yet taken place.)

“We, of course, expect all EU leaders, all member states, to abide by their commitments,” a Commission spokesperson said.

After a bitter clash with Orbán over his “unacceptable” veto, capitals are keen to turn the page and leave the episode behind.

Speaking alongside Zelenskyy on Tuesday, German Chancellor Friedrich Merz said the military funds under the loan “must be disbursed promptly”.

“Ukraine urgently needs them. Ukraine will then be able to finance its defence in the long term. Russia should take this seriously,” Merz said.

Zelenskyy echoed the message and expressed confidence that, under Magyar’s leadership, Hungary would stop blocking “important” decisions for Ukraine.

“I am sure that we will cooperate with Hungary. We have good relations between the people. We are neighbours. We will continue these relations,” Zelenskyy said.

“I think we need to build our relations on pragmatism. We can also have friendly relations based on agreements and treaties. This will only strengthen both countries.”

Besides the loan, Hungary, together with Slovakia, is currently vetoing the 20th package of sanctions against Russia. It is also blocking Ukraine’s accession process and the release of €6.6 billion in military aid under the European Peace Facility (EPF).