Why Orbán’s Defeat Won’t (yet) Unblock EU’s €90 billion Ukraine Loan

Speaking to reporters on Monday, Magyar suggested, but didn’t confirm, that he will lift Budapest’s veto on the loan. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Hungary’s Prime Minister Viktor Orban salutes to supporters at the Balna centre in Budapest during a general election in Hungary, on April 12, 2026. (Photo by Attila KISBENEDEK / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google Péter Magyar’s landslide victory over Viktor Orbán in Sunday’s Hungarian elections triggered a collective sigh of relief in Brussels – and in Kyiv. For almost a month and a half, the Moscow-friendly premier has refused to sign off on a crucial EU €90 billion loan package to Ukraine that the bloc’s leaders – including Orbán himself –  previously agreed  to in December. Follow our coverage of the war on the @Kyivpost_official . Orbán’s stonewalling, which comes on top of his refusal to green light the bloc’s  20th sanctions package  on Russia or open  EU accession  talks with Ukraine, follows the self-described “illiberal” leader’s repeated attempts to portray his former ally as a “ puppet ” of Kyiv and Brussels on the campaign trail. Speaking to reporters on Monday, Magyar  suggested , but didn’t confirm, that he will lift Budapest’s veto on the loan. But he also expressed confusion about why the scheme is blocked in the first place, given that Hungary has received an opt-out that means it is not financially liable to repay the loan’s interest or principal. “I don’t fully understand this,” Magyar said. “I will discuss it with European leaders. But personally, I agree that Hungary should opt out.” EU officials and diplomats also warn that Orbán’s repeated criticisms could make it politically difficult for Magyar to immediately approve the loan, which Orbán has blocked over allegations that Ukraine has slow-walked repairs to the Druzhba pipeline, a critical oil conduit that transports Russian crude to Hungary via Ukraine. Other Topics of Interest Ukraine Can Produce Millions of FPV Drones a Year, Zelensky Says “The enemy will feel it,” Zelensky said, as he touted Ukraine’s growing ability to build drones, missiles and robotic systems for the battlefield. Magyar has also struck a notably  cautious line  on foreign policy, and particularly on Ukraine, during the campaign. “I think generally we should be cautious in expecting too much from Magyar,” said one EU diplomat. “He’s no saint.” Still, EU officials are generally optimistic that Magyar, a former MEP whose Tisza party hails from the same European People’s Party as European Commission President Ursula von der Leyen, will eventually lift Budapest’s veto. “If you look at the discussions by Péter Magyar and his announcements in the public sphere during the election campaign, you can already see that he’s very clear on the European path,” von der Leyen told reporters on Monday, adding that his “exceptional” electoral win represented a “victory for fundamental freedoms”. The diplomat added: “The ball is very much in Magyar’s court. He says he wants a constructive relationship with the EU? The quickest way to build confidence is by unblocking that €90 billion loan, especially since it does not cost Hungary anything. It’s literally free.” Assuming Magyar does eventually lift his veto, however, it will still take several weeks, at least, for the loan to be disbursed. This is partly because it will take some time for Magyar to form a government. Magyar himself said yesterday that he is aiming to do this by 5 May. Equally important, however, is the fact that the bureaucratic machinery is not yet in place for the loan to be disbursed. A Ukraine financing plan outlining how the money will be spent, which was  unveiled  by the Commission earlier this month, still needs to be approved by member states. Furthermore, a “memorandum of understanding” for cash specifically allocated to Ukraine’s budget must be agreed between Brussels and Kyiv. A “loan agreement” further elaborating on the scheme’s details must also still be drafted. These documents – plus a final check that all the conditions have been met for the money to be disbursed – will likely only be finalised by late April or early May, officials say. But even if all these conditions are met and Hungary’s veto is eventually lifted, Slovakia – another Central European country run by a populist premier – could prove to be a spoiler. Prime Minister  Robert Fico , whose country is also heavily dependent on crude deliveries via Druzhba, has previously said that Bratislava “is ready to take over the baton from Hungary, if necessary” – effectively pledging to block the loan if oil deliveries are not resumed. Much like Magyar, however, diplomats remain optimistic that Fico will prove easier to persuade than Orbán. They also note that Orbán, the EU’s longest-serving leader who has cultivated illiberal populism across the bloc, is far more capable of standing alone against Brussels than his Slovak counterpart. “They’re different beasts,” said another EU diplomat. Adding to this sense of overall optimism, Zelenskyy – who has previously suggested that Ukraine  wouldn’t repair  the pipeline at all – said last week that the repairs would be completed “ this spring ”. But even if the loan is slightly delayed, EU officials – and, judging by his actions, Zelenskyy himself – do not believe this will significantly harm Ukraine’s economy. Analysts also note that Kyiv could, in a worst-case scenario, print money or issue war bonds to its domestic banks in order to remain financially viable. Maksym Samoiliuk, an economist at the Centre for Economic Strategy, a Kyiv-based think tank, believes that Kyiv could remain financially solvent until mid-July – well beyond the late April or early May period  previously estimated  by many analysts and officials. This, he said, could be done by Kyiv spending money earmarked for the end of 2026 during the first half of the year. State-owned firms could also pay out dividends to the Ukrainian government earlier than planned, he added. “Nevertheless,” Samoiliuk said, the loan “is still crucial going forward. Let’s hope that the news from Hungary brings us more reasonable Brussels-Budapest relations.” Many in Brussels will be hoping for the same thing. Euractiv is a European news website focused on EU policies. It was founded in 1999 by the French media publisher Christophe Leclercq. The website's headquarters and central editorial staff are located in Brussels, with offices in Paris and Berlin.