Hungary’s veto on money for Ukraine is to hijack the spotlight at Thursday’s EU summit in Brussels (19 March), alongside disagreements over Europe’s carbon market, overshadowing what was meant to be a key debate on turning Europe into a truly economic powerhouse.

In draft conclusions, seen by EUobserver, leaders are expected to call for the “swift adoption of the 20th sanctions package” against Russia — which are currently blocked by Hungary and Slovakia over disputes over a damaged oil pipeline.

EU sanctions need to be agreed by unanimity, giving leverage to Budapest and Bratislava to ask for Ukraine to repair a Soviet era oil pipeline carrying Russian oil to these countries, despite a deadline to stop the import of Russian fossil fuels approaching.

On top of that, Hungarian prime minister Viktor Orbán is also blocking the disbursement of €90bn to Ukraine, previously agreed during marathon talks at the EU leaders’ summit last December. Hungary’s vetoes are widely seen as domestic fuel for Orbán’s campaign ahead of the tight 12 April elections, as opinion polls point to a potential end to his 16-year rule.

Back in December, EU leaders decided not to use Russian frozen assets to assist Ukraine, instead agreeing on a €90bn loan — without the involvement of Hungary, Slovakia and the Czech Republic.

But Orbán himself made it clear on Tuesday on X, saying: “No oil deliveries? No money. It’s that simple”. 

The deadlock has drawn sharp criticism from other national representatives in lower-level meetings ahead of Thursday’s gathering, where EU member states are expected to urge Orbán to respect the December agreement.

“A decision taken needs to be respected, and commitments need to be respected,” said an EU senior official ahead of the meeting. 

“There is no plan B [to the €90bn loan] … this was plan B in December,” an EU senior diplomat pointed out.

The diplomat also said that Orbán’s veto after the December agreement is “unacceptable” and sets a “very dangerous precedent”. 

“We have only one plan, and that is that Orban should deliver on his promise,” a second EU senior diplomat said.

But with no sign of Orbán backing down over the past few weeks, some member states are pushing for more bilateral aid to Ukraine, arguing the burden isn’t being shared evenly. 

According to data from the Kiel Institute, the UK, Germany, Norway, Sweden, Denmark, and the Netherlands led funding for Ukraine’s defence in 2025.