Finance
EU Has Tools to Bypass Hungary's Ukraine Loan Veto but Must Show Courage, Kallas Says
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Quick Summary
EU foreign policy chief Kaja Kallas says alternative routes exist to bypass Hungary’s veto on a €90 billion loan to Ukraine—but political courage is needed, with Croatia’s Adria pipeline and EU “toolbox” options among possible solutions.
EU May Circumvent Hungary’s Loan Veto to Ukraine, Kallas Says at Brussels Summit
EU Leaders Seek Solutions Amid Hungary’s Veto on Ukraine Loan
Background on the Loan Veto
BRUSSELS, March 19 (Reuters) - There are alternatives to overcome Hungary's veto on a 90 billion euro ($103 billion) loan to Ukraine but they will need political courage from European leaders, EU foreign policy chief Kaja Kallas said on Thursday.
Kaja Kallas’ Statement at the Brussels Summit
Political Courage Required
"There are alternatives, but let's see how this goes. It will also need some political character from all of us," Kallas told reporters ahead of a European Council summit in Brussels.
Hungary’s Position and EU Pressure
Orban’s Defense of the Veto
Hungary is under pressure from fellow EU countries to lift its veto, which Prime Minister Viktor Orban has defended amid a dispute with Kyiv over a war-damaged oil pipeline.
Potential Solutions and Criticism
Oil Supplies from Croatia
Kallas said that oil supplies from Croatia could be a solution for Hungary, while she added that Hungary was not acting "in good faith" with its resistance to the already agreed loan.
Additional Information
Exchange Rate
($1 = 0.8734 euros)
Reporting Credits
(Reporting by Gianluca Lo Nostro; Editing by Bart Meijer)
Key Takeaways
- •Kaja Kallas urged EU leaders to show political character in finding ways around Hungary’s veto on Ukraine’s €90 billion loan. (apnews.com)
- •The EU is exploring a “toolbox” of energy and political measures to counteract supply shocks and pressure from Hungary. (apnews.com)
- •Croatia’s Adria pipeline (JANAF) offers a viable alternative route for oil supplies to Hungary and Slovakia while the Druzhba pipeline is under repair—though Croatia and Hungary are at odds over transit terms. (euronews.com)
References
Frequently Asked Questions about EU has tools to bypass Hungary's Ukraine loan veto but must show courage, Kallas says
1What is Hungary's position on the EU's loan to Ukraine?
Hungary is vetoing the 90 billion euro loan to Ukraine, citing disputes over a war-damaged oil pipeline and acting, according to Kallas, not in good faith.
2What alternatives exist to bypass Hungary's veto on the Ukraine loan?
EU foreign policy chief Kaja Kallas mentioned that alternatives exist, including sourcing oil supplies from Croatia for Hungary.
3What does Kaja Kallas say is needed to overcome Hungary's veto?
Kaja Kallas states that political courage and character from European leaders are required to find solutions.
4Why is Hungary defending its loan veto?
Prime Minister Viktor Orban is defending the veto due to a dispute with Kyiv over a war-damaged oil pipeline.
5Where did Kaja Kallas make her statement regarding the Ukraine loan?
Kaja Kallas spoke ahead of the European Council summit in Brussels.
