BRUSSELS, February 27. /TASS/. Hungary may continue blocking the EU’s 20th package of anti-Russian sanctions until Brussels approves Budapest’s application for a 16 billion euro defense loan, Politico Europe reported, citing sources.

Earlier, Hungary vetoed the 20th sanctions package against Russia and declined to approve a 90 billion euro EU military loan for Ukraine, pointing to Kiev’s suspension of oil supplies via the Druzhba pipeline. According to unnamed diplomats, the Hungarian government now plans to maintain its veto until its application for a defense loan under the EU’s SAFE militarization program is approved. The European Commission has yet to pass the request and is delaying payment of the first 2.4 billion euro tranche.

The European Commission denies blocking the loan. Sources cited by the newspaper said the Commission must approve Hungary’s application to ensure the delay does not appear political.

Hungarian data show that oil has not flowed through the Druzhba pipeline to MOL’s refinery since January 27. Budapest argues that Kiev halted the transit of Russian crude for political reasons. In response, Hungary has suspended diesel supplies to Ukraine and threatened to cut off electricity exports.