Hungary Blocks EU Loan to Ukraine Amid Tensions
Hungary has blocked the European Union's €90 billion loan to Ukraine, with Foreign Minister Péter Szijjártó accusing Kyiv of blackmailing Hungary over disruptions to oil transit via the Druzhba pipeline. This decision complicates Ukraine's financial situation as it faces dwindling resources for its war effort, with funds expected to run low by April. The move comes as Prime Minister Viktor Orbán intensifies anti-Ukraine rhetoric ahead of upcoming elections.
Poland's SAFE defense loan program faces political hurdles
Poland's participation in the Security Action for Europe (SAFE) defense loan program is at risk due to political disputes, as the right-wing opposition argues that it threatens national sovereignty. Warsaw is set to receive €43.7 billion from the €150 billion EU initiative, but the Senate has passed a bill with amendments that now requires approval from the lower chamber, the Sejm, before President Karol Nawrocki can sign it into law. The opposition, led by Jarosław Kaczyński, has called for a veto, citing concerns over the program's conditionality linked to the rule of law.
Europe's Gas Reserves Drop Amid Supply Shortages
As of February 18, 2026, reserves in Europe's underground storage facilities have fallen to 32.5%, with critical lows reported in Germany (22.3%), France (23%), and the Netherlands (13.7%), all below the 10-year average. Gas prices have risen, with TTF futures reaching 33.7 euros/MWh, driven by supply shortages and geopolitical tensions. The EU's plan to ban LNG imports from Russia by 2027, part of the REPowerEU initiative, raises concerns as dependence on U.S. LNG could reach 70%, complicating efforts to diversify energy sources.
Denmark to tighten Ukrainian refugee protection scheme
Denmark is set to tighten its special protection scheme for Ukrainian refugees, effective mid-May, by halting residence permits for certain displaced individuals, including those subject to mobilization in Ukraine. This change affects new applicants but will not impact the approximately 65,000 Ukrainians who have already received permits under the scheme, which grants immediate access to work, housing, and healthcare. The move aligns with a broader trend among EU governments to narrow eligibility rules for Ukrainian refugees as the conflict continues.
