Hungary will block the next tranche of European Union military aid to Ukraine and any new sanctions package against Russia unless Kyiv removes Hungarian bank OTP from its list of war sponsors, Foreign Minister Peter Szijjarto said on Wednesday, as quoted by Reuters.

“We cannot give the green light while the OTP remains on the blacklist,” said Peter Sijarto. “The same applies to sanctions,” added the head of diplomacy from Budapest.

This week, Hungary blocked a proposal to allocate another €500 million from the EU-run European Peace Fund as military aid to Ukraine. These funds will allow EU governments to submit new requests for restitution of weapons and ammunition they have donated to Kyiv.

In justifying this action, Hungary asked for guarantees that other regions, such as the Balkans or North Africa, would receive money from this fund. But EU diplomats in Brussels said that behind closed doors, Hungary clarified that the main reason for its blocking is Ukraine’s inclusion of OTP bank in the black list of sanctioned organizations.

EU officials said they were working to resolve the issue, trying to determine whether Kyiv had blacklisted the entire bank or just its Russian branch.

Some diplomats expressed their disappointment at Hungary’s move, arguing that the two issues should not be linked, and noting that other EU companies are also on Kyiv’s blacklist. “We will talk to Ukrainians, and we will talk to (EU) member states, including Hungary,” a senior EU official told Reuters on condition of anonymity. “Our priority is clear – to help Ukraine win the war. And for this there must be military and financial assistance. This is an absolute priority for the European Union,” the diplomat said.

To date, the EU has provided military support to Ukraine in the total amount of 3.6 billion euros from the European Peace Fund (EPF).

Hungary, which is a member of the EU and NATO, has refused to supply military equipment to its Ukrainian neighbor and has also repeatedly criticized EU sanctions against Russia, although in the end it supported all agreed measures.