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The European Union has failed to approve new sanctions against Russia after Hungary and Slovakia vetoed the proposed measures.

Some shit you should know before you dig in: If you’re unaware, the European Union operates on a principle of unanimity when it comes to adopting foreign policy decisions such as sanctions, meaning all 27 member states must agree for a package to take effect. This requirement gives any single country the power to block or delay measures by withholding its approval. Hungary has repeatedly used this mechanism to stall sanctions packages and financial aid related to Ukraine, positioning itself as a key holdout within the bloc. Critics argue that Prime Minister Viktor Orbán’sgovernment maintains a more Russia-friendly stance than most EU members, while Hungarian officials say their objections are rooted in national interests, particularly Hungary’s continued dependence on Russian oil supplies, and concerns about escalation between Russia and the West. Others within the EU suggest Budapest leverages its veto power strategically to negotiate concessions, including access to EU funds or additional support, in exchange for eventually backing collective decisions.

What’s going on now: In a notable development, Hungary and Slovakia blocked the European Union’s proposed 20th sanctions package against Russia, a sweeping set of measures intended to intensify economic pressure on Moscow ahead of the fourth anniversary of its full-scale invasion of Ukraine. The blocked package targeted key pillars of Russia’seconomy, particularly energy revenues and financial channels. Among its most significant elements was a full maritime services ban that would have prohibited EU-based companies from providing shipping and insurance for vessels transporting Russian oil. The proposal also aimed to expand sanctions on Russia’s so-called “shadow fleet,” adding dozens of vessels suspected of circumventing restrictions and banning maintenance services for certain vessels.

Additional measures would have sanctioned around 20 regional Russian banks, tightened restrictions on crypto-related mechanisms used to bypass sanctions, imposed export bans on goods ranging from industrial equipment to cybersecurity tools, and restricted imports of metals, chemicals, and critical minerals tied to Russia’s war effort.

Hungary and Slovakia justified their veto by pointing to disruptions in Russian oil deliveries through the Soviet-era Druzhba pipeline, which runs through Ukraine to Central Europe. Both governments accused Ukraine of deliberately delaying the restart of oil flows after damage reportedly caused by a Russian drone strike in late January. Hungarian officials described the situation as a politically motivated blockade that threatened their energy security, while Slovak leaders warned of retaliatory steps if supplies were not restored. Ukraine has rejected those accusations, stating that the infrastructure was damaged by Russian attacks and that repairs are subject to security conditions.

In addition to blocking the sanctions package, Hungary also vetoed a planned $105 billion EU loan for Ukraine covering 2026–2027. The loan, previously agreed to in principle by EU leaders, was designed to provide long-term macro-financial stability and ensure Kyiv could meet military, budgetary, and reconstruction needs as the war continues. Although Hungary had secured an exemption from directly contributing funds, unanimous approval was still required to authorize the mechanism.

The move drew sharp criticism from other member states, with some foreign ministers visibly pissed and accusing Hungary of undermining EU unity.

Despite the broader deadlock, the bloc did manage to approve targeted human rights sanctions against eight Russian individuals, including members of the judiciary and prison officials accused of overseeing politically motivated prosecutions and inhumane detention conditions. Those sanctioned face EU travel bans, asset freezes, and prohibitions on EU entities providing them with funds.