In a letter to Antonio Costa, sent on Thursday, Viktor Orbán hinted he could step back if the European Union formally assesses the damage inflicted on the pipeline on Ukrainian territory.
Several EU officials believe that a commitment to resolve the Druzhba pipeline issue could allow the loan to be unblocked.
At the same time, two diplomats familiar with the discussions warned that Budapest’s maneuvering could go further. According to them, Hungary could continue blocking the deal until its own request for a €16 billion defense loan under the SAFE instrument is approved.
The diplomats, whose names Politico did not disclose, said Budapest’s pressure campaign is primarily aimed at speeding up approval of the SAFE request by the European Commission.
It is believed that the defense loan could be the key factor for Orbán, despite his public claims of an alleged EU conspiracy with Ukraine to deprive Hungary of access to Russian oil.
There are, however, grounds for optimism, Politico noted. They are based on what one diplomat described as the “conciliatory tone” of Orbán’s letter.
The outlet also reported that alternatives for dealing with the Hungarian prime minister continue to be discussed behind the scenes, including Article 327 of the EU treaties.
That “little-known provision,” reportedly flagged by the Council’s legal services, states that member states not participating in enhanced cooperation — the legal basis for the loan — “shall not obstruct its implementation by the participating member states.”
Transit of Russian oil to Hungary and Slovakia through the Ukrainian section of the Druzhba pipeline was halted after a Russian attack on the pipeline’s infrastructure on Jan. 27.
Hungary and Slovakia have accused Ukraine of politically delaying the restoration of Russian oil transit.
On Feb. 20, the Financial Times, citing sources, reported that Hungary had blocked an agreed €90 billion EU loan for Ukraine intended to help stabilize the economy during the war.
On Feb. 23, the Hungarian government blocked the adoption of the European Union’s 20th sanctions package against Russia.
Hungarian Foreign Minister Peter Szijjarto said the decision was based on the suspension of Russian oil transit to Hungary via the southern branch of the Druzhba pipeline.
On Feb. 24, Costa said an agreement had been reached with Ukraine to assess how long it would take to restore oil transit through the pipeline.
On Feb. 26, Orbán published an “open letter” to Ukrainian President Volodymyr Zelenskyy, in which he called, among other things, for the immediate resumption of operations on the Druzhba pipeline.