Live. EU summit: Orbán vows to keep veto until oil flows back through Druzhba

High Representative Kaja Kallas says the United States and Israel failed to justify the use of force against Iran.

"We don't know what are the objectives of this war. And, also, there is no international law basis. If you think about using force, for example, there are two cases: one is self-defence, and the other one is under the UN Security Council resolution, as there is no such thing at this moment," Kallas said before heading into the summit.

"Member states do not have an appetite to go to this war."

Because of this, the EU is not willing to deploy a military mission to reopen the Strait of Hormuz, Kallas said, but there are ongoing discussions with the United Nations to find a wider solution.

"What is important is that for all of us in the European Union, we want to see the end of this war. We definitely see the chaos that is causing in the Middle East, but also the ramifications it has for the rest of the world," Kallas said, speaking about energy and fertiliser exports.

"We are working with our Gulf partners, also with Egypt, Jordan, to find a solution that the parties could end this war."

Kallas decried Iran's execution of a Swedish citizen on Wednesday, which took place shortly after she spoke with Iran's foreign minister. Kallas was not informed about the execution in advance and was therefore unable to raise the matter during the phone call.

High Representative Kaja Kallas has criticised Hungary's Viktor Orbán for backtracking on the agreement reached in December to provide Ukraine with a €90 billion loan, from which his country was exempted.

"I guess, you know, in the time of elections, people are not that rational," she said, referring to Orbán's bruising re-election campaign.

Kallas said she was not "very optimistic" about lifting the veto during the summit, given the ongoing dispute between Hungary and Ukraine over the Druzhba pipeline. She said there were "alternatives" if the loan were to fall apart and urged leaders to show the "political courage" needed to overcome the impasse before Kyiv runs out of money in early May.

"It's really time to show our support to Ukraine, because the war in the Middle East is connected to the war in Ukraine," she said. "And unfortunately, Russia is gaining from the war in the Middle East. So that's why, exiting or ending this war (in Iran) is equally important to have a solution also for Ukraine that is not complete surrender to Russia."

Credit: Associated Press

Austrian Chancellor Christian Stocker said his government will push to extend free emissions trading certificates beyond the 2034 deadline, as part of efforts to reduce energy costs for Europe's industry.

Austria is among ten European Union member states that have written to the European Commission calling for such move.

"I have been very committed to this — even writing a letter, now supported by nine other countries — to extend the free certificates beyond 2034 and simultaneously allow the gas price to be factored out of the certificates. This would also help lower prices, which our industry urgently needs," Stocker said.

The Chancellor also turned his attention to Hungary, calling on Prime Minister Viktor Orbán to honour a previous commitment on the EU loan to Ukraine and warning against using the issue for domestic political gain. Hungary is scheduled to hold parliamentary elections on 12 April.

"If this is part of the election campaign, then I believe we must also be honest with each other and say that this is not a valid argument — given how Ukraine is faring, how the people of Ukraine are faring, and what we ourselves have previously agreed," Stocker said.

António Costa, the president of the European Council, who will chair today's summit, says the political push to lower energy prices must take into consideration the next generation of Europeans.

"The current conflict in Iran shows once again that the best way to have a predictable and reliable horizon on our energy is to increase the home-grown production of energy," Costa tells reporters.

"Of course, we need to do this, taking into account the specificity of different member states, the specificity of some economic sectors, (which) are intensive in the use of energy. But we need to do this together and never forget that we need to not only protect our companies today, but we need also to ensure that the next generation continues to have a planet to live on," he goes on.

"Energy means security. We need to be able to build our own capacity to produce our own energy, because it's the only way to be secure."

Credit: Associated Press.

Lithuania's President Gitanas Nausėda told reporters ahead of the Council that he was "worried" to see the war in the Middle East overshadowing the war in Ukraine, as "we are in a very critical stage of the war," and "we are still far away from a peace deal."

Nausėda made clear that Russia had no intentions to come to a peace deal.

However, he said it was up to the EU to strenghen the existing sanctions regime, and push for the next 21th package of sanctions.

Hungarian Prime Minister Viktor Orbán is set to uphold his veto on a €90 billion EU loan to Ukraine until oil deliveries through the Druzhba pipeline are restored, intensifying a standoff with Kyiv that has already delayed an agreed financial package.

"We are ready to support Ukraine when we get our oil, which is being blocked by them. Until then, there is no decision that is favourable for Ukraine," he said upon arriving at the summit in Brussels.

Hungary withdrew its support for the deal in mid-February following a dispute with Ukraine over the pipeline.

Hungary’s refusal to lift its veto has sparked criticism from several EU member states, which accuse Budapest of obstructing a deal that had already been agreed. The European Commission said this week that experts would conduct an on-site assessment of the Druzhba pipeline and deliver a report outlining possible solutions. Orbán, however, dismissed the move as inadequate.

"We are waiting for the oil — all the rest is just a fairy tale," he said.

The Hungarian Prime Minister described the restoration of Druzhba supplies as "existential" for his country's energy security.

The situation in Iran is "too volatile" to set up an international mission to reopen the Strait of Hormuz, says Rob Jetten, the new prime minister of the Netherlands.

"This is a war that was started by the United States and Israel against Iran for reasons that I can understand because the Iranian regime is brutal not only for its own people, but also for the broader region and a security threat to Europe," Jetten says.

"But it's not a war that we are part of. The Netherlands is ready, together with France and others, to protect European partners. But at the moment, there is no clear indication that there is a proper proposal for a mission," he adds. "So we need to put focus on de-escalating the war at the moment and then look at extra measures that Europe can take."

Asked about possible regime change in Iran, Jetten says it will not happen "with just bombing".

"It's only up to the Iranians to decide the future of Iran. Hopefully, this brutal regime will go away as soon as possible," he tells reporters. "I'm a big fan of more sanctions from the EU on the Iranian regime and more support for the democratic forces in Iran."

Regarding Hungary's veto on the €90 billion loan for Ukraine, Jetten says the decision taken by EU leaders in December should be respected. He also praises the European Commission for sending a technical inspection to the Druzha pipeline. Experts are already on the ground.

Latvia's Prime Minister Evika Siliņa lashed out against Hungary for blocking the 90 billions euros loan to Ukraine, reminding reporters that the deal on the loan was agreed at an EU summit in December.

"I don't think we need to adjust a lot to those who don't want to fulfill what has agreed," Siliņa said. "Ukraine really needs the 90 billions euros."

Rob Jetten, the new prime minister of the Netherlands, has arrived at his first-ever EU summit.

His message focuses on the Emissions Trading System (ETS), which puts a price on the carbon emissions released by the most polluting industries. Several countries, such as Italy, Poland and Romania, have blamed the ETS for high energy prices and demand immediate changes, even a full suspension.

But for Jetten, the ETS should not be touched.

"Let me be clear. The ETS system was crucial to speed up the transition in Europe. And without the ETS system, we would now be importing billions and billions of fossil fuels from outside of Europe," he said.

"So I'm willing to look at how to improve our climate policies, but we're not going to revoke policies that are, in the end, crucial to make sure that this continent is greener and stronger in the long term."

Credit: Associated Press.

European leaders will be pushing for a quick fix to ease energy prices, rattled by the war in Iran.

With the Strait of Hormuz shut off, carrying one fifth of the world’s oil supply, and an overnight attack on an LNG facility on Qatar, the concern is the fragile supply will spark a global bidding war.

European gas prices opened Thursday pushing another 30% higher.

Upon arriving, Belgian Prime Minister Bart De Wever made it clear that his country has "no intention" to join the military confrontation in the Middle East launched by the United States and Israel.

"For now, I can tell you that Belgium has no intention to get implicated in the war on Iran. None whatsoever," De Wever told reporters.

Last week, US President Donald Trump publicly called on Europeans to help him reopen the Strait of Hormuz, but the request was widely rebuffed. The issue will be discussed today at the summit, but EU leaders insist the solution should be diplomacy, rather than military escalation.

Bart De Wever, the prime minister of Belgium, is the first to arrive at the summit and is asked about his recent controversial remarks suggesting a normalisation of relations with Russia.

"Belgium wants to keep supporting Ukraine 100% and keep pressure on Russia very high," De Wever tells reporters. "What I said is that I don't think it's normal that we're financing a war, but we're not represented at the negotiating table. That's not a normal situation. We should negotiate to reach a normal peace."

About normalising ties with Russia, De Wever notes this should only happen in the context of an "acceptable and sustainable peace", which he considers "very long term".

Asked about Hungary's veto on the €90 billion loan, De Wever says: "We have to do the loan, it’s as simple as that. It has been politically decided, so it has to be executed."

Here's a compressed timeline to understand the dispute around the Druzhba pipeline that has paralysed the €90 billion loan for Ukraine.

• 27 January: Flows of Russian oil through the Druzhba pipeline stop after a drone attack near the Brody pumping station. The attack is attributed to Russia.
• 15 February: Hungary and Slovakia, the two countries that remain connected to Druzhba, ask Croatia to allow Russian oil through the Adria pipeline. Croatia denies the request because Russian oil is under both EU and US sanctions.
• 18 February: Hungary and Slovakia halt diesel exports to Ukraine, accusing the country of deliberately shutting down the pipeline. Kyiv insists it is damaged and oil flows cannot resume.
• 19 February: As tensions escalate, the European Commission convenes an emergency meeting of its Oil Coordination Group. The executive says there is no energy supply crisis.
• 20 February: In a sudden move, Hungary decides to block the €90 billion loan for Ukraine that EU leaders had endorsed in December. The country vetoes the only legislative proposal that relates to the EU budget and requires unanimity.
• 24 February: During a visit to Ukraine, Ursula von der Leyen says the loan will happen "one way or the other". She also asks Volodymyr Zelenskyy to accelerate the repair works.
• 26 February: Viktor Orbán proposes a "fact-finding mission" to the pipeline and admits the "political difficulties" caused by his veto.
• 6 March: Tensions dramatically escalate after Hungary seizes a convoy from a Ukrainian bank and Zelenskyy suggests giving Orbán's personal address to his soldiers.
• 10 March: Robert Fico says he has reached an agreement with von der Leyen on the need to restore Druzhba. He also offers repair assistance, but insists the pipeline is operational.
• 17 March: Ukraine agrees to an external inspection of Druzhba led by the European Commission. The fact-finding mission is quickly put together and sent to the country.
• 19 March: EU leaders meet in Brussels.

The 27 leaders of the European Union are heading into a stormy summit on Thursday, with Hungary’s veto of a €90 billion loan for Ukraine, the war in the Middle East and high energy prices set to dominate the talks.

Here's what to expect.

Orbán’s veto, Iran war and energy prices set to dominate EU summit

Thursday’s summit will see EU leaders try to convince Viktor Orbán to lift his controversial veto on the €90 billion to Ukraine. But hopes for a resolution bef…