Antonio Costa, the President of the European Council on Monday, urged Hungarian Prime Minister Viktor Orban 'to honour a 'deal for a 90-billion euro loan ($106.11billion) to Ukraine. Budapest had said that it would 'block the plan unless Russian oil flowed anew through the Druzhba Pipeline which stretches across Ukraine.

"When leaders come to a consensus they are bound by that decision." Costa, who chairs EU summits, wrote to Orban that any breach of this commitment would be a violation of "sincere cooperation".

"No 'Member State' can be allowed to 'undermine the credibility taken collectively by a European Council,'" Costa wrote in reference to the loan which was voted on by EU leaders at a summit held in December.

(source: Reuters)