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Iran Conflict 2026
31MAR

Hungary halts gas exports to Ukraine

2 min read
08:23UTC

Budapest began cutting reverse gas supplies amid the Druzhba dispute, adding energy coercion to its continued blockade of the €90 billion EU loan.

ConflictDeveloping
Key takeaway

Hungary combined loan blockade, gas cutoff, and EU obstruction into three-track pressure on Ukraine.

Hungary began halting reverse gas exports to Ukraine on 25 March amid the ongoing Druzhba pipeline dispute 1. EU experts remain in Kyiv to inspect the damaged pipeline, but Ukraine has not granted access to the affected section.

The gas cutoff follows Fico's declaration of an oil supply emergency in Slovakia , where the Druzhba shutdown threatens refinery operations. Both Hungary and Slovakia depend on Russian crude delivered through the pipeline, which was damaged by Russian strikes in January 2026. Budapest blames Kyiv for the shutdown; Ukraine and EU assessments attribute the damage to Russian military action.

Hungary's punitive measures now span three domains. It continues blocking the €90 billion EU loan , despite nominally having dropped its objection. The SAFE freeze announced the same day (25 March) was the EU's response. And the gas export halt adds direct energy pressure on Ukraine, which relies on reverse flows from Central European neighbours to supplement its own supply.

The 25 April deadline for the EU's phased Russian gas ban looms. For Hungarian and Slovak consumers, that deadline translates to higher heating costs unless alternative supply routes open. Hungary's energy dependence on Russia gives it disruptive power within the EU, but the SAFE freeze demonstrates the bloc is willing to retaliate with financial consequences.

Deep Analysis

In plain English

Ukraine gets some of its gas through a process called 'reverse flow': neighbouring countries buy gas from Western Europe and pipe it back east to Ukraine. Hungary has started blocking this supply. Separately, there is a Soviet-era oil pipeline called Druzhba that used to carry Russian oil through Ukraine to Hungary and Slovakia. It was damaged (Ukraine says by Russian drones; Hungary disputes this) and Hungary wants Ukraine to fix it. Hungary is using both energy levers — the gas flow and the pipeline dispute — as pressure on Ukraine while also blocking a €90 billion EU loan.

First Reported In

Update #8 · Pentagon diverts funds; 948 drones fired

Euronews· 27 Mar 2026
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Different Perspectives
Oil markets / Lloyd's underwriters
Oil markets / Lloyd's underwriters
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Pakistan (mediator)
Pakistan (mediator)
Interior minister Mohsin Naqvi carried dual civilian and military letters to Mojtaba Khamenei in Tehran on 6-7 June with no public response. The IRGC's Hormuz closure on 11 June shows the corps is acting independently of the channel Pakistan is using, making the mediation structurally unable to produce a binding commitment without direct IRGC access.
Russia and China
Russia and China
Russia and China voted against GOV/2026/40 at the IAEA Board, following through on the blocking position coordinated with Grossi in Geneva on 5 June; both states continue to oppose Western institutional pressure on Iran at every multilateral venue.
E3 and IAEA (UK, France, Germany)
E3 and IAEA (UK, France, Germany)
The E3 co-sponsored IAEA resolution GOV/2026/40, adopted 21-3-10 on 10 June, demanding Iran disclose 440.9 kg of unaccounted HEU and admit inspectors to four denied facilities. The 10 abstentions and Russia-China noes leave any Security Council referral without a viable enforcement path.
IRGC / Iran military command
IRGC / Iran military command
The corps declared Hormuz closed to all traffic on 11 June and claimed two vessels struck, overriding the MoU its own civilian negotiators were pursuing through Pakistan. The closure order used the Persian Gulf Strait Authority apparatus to convert a toll mechanism into a military prohibition.
Trump administration / CENTCOM
Trump administration / CENTCOM
CENTCOM completed a second day of strikes on Tehran, Sirik and Minab, rejected the IRGC Hormuz closure as inconsistent with observed transit, and said strikes were complete. Hegseth framed the bombing explicitly as the negotiation: the method is coercive deal-making with no stated pause threshold.