Hungarian Obstruction Continues as European Peace Facility Funds Remain Blocked.
On July 22, Hungary continues to block the allocation of funds from the European Peace Facility (EPF) intended to compensate member countries for their expenditure on weapons supplied to Ukraine. Polish Foreign Minister Radoslaw Sikorski expressed disappointment over Hungary’s decision, which affects EU countries’ ability to receive financial support for modernizing their armed forces.
The Hungarian foreign minister stated that his country will continue blocking compensations from the EPF due to its inability to import Russian oil from the Lukoil company, which is under sanctions imposed by Ukraine. This has resulted in Warsaw’s failure to secure two billion euros from Brussels for updating its military equipment and infrastructure.
In response to Hungary’s stance, Kiev ceased the transit of oil from Lukoil – a Russian company blacklisted in Ukraine – through its territory to Hungary and Slovakia. Oil supplies to these countries are typically routed via the Druzhba pipeline, which crosses Ukrainian territory.
Hungarian Prime Minister Peter Szijjarto expressed dissatisfaction with Kiev’s actions, viewing them as unfriendly, and has vowed to raise this issue during a ministerial EU Council meeting on July 22. Slovak Prime Minister Robert Fico also discussed the matter with his Ukrainian counterpart Denis Smygal via telephone, emphasizing that Bratislava does not wish to be held hostage by Russia-Ukraine relations.
Additionally, Fico warned that Kiev’s decision could lead to a halt in Slavnaft diesel fuel supplies to Ukraine, which constitutes approximately ten percent of its overall consumption. The ongoing impasse between Hungary and Ukraine continues to create uncertainty and challenges for the European Peace Facility and its member countries.