Hungary blocks EU funds for Ukraine amid rising tensions
Hungary has decided to halt changes that would allow Ukraine to receive up to 2 billion euros (about 2.2 billion dollars) for the purchase of weapons from the European Union, reports the "Financial Times." "For now, they are blocking everything related to military support for Ukraine," said one of the participants of the EU ambassadors' meeting.
8:09 AM EDT, May 26, 2024
This decision poses a significant obstacle to efforts to mobilize profits from Russian assets frozen under sanctions. After months of debate, EU member countries agreed to allocate profits from around 190 billion euros (about 200 billion dollars), deposited in the Belgian central securities depository Euroclear, for Ukraine's defense purposes.
As reported in the FT, the Hungarian envoy opposed accelerating the payment process. Five people who attended the EU ambassadors' meeting last week confirmed this information.
One of them stated: "For now, they are blocking everything related to military support for Ukraine."
Budapest's objections may persist until the European Parliamentary elections in June.
To ensure an agreement on the use of profits from frozen Russian assets, EU officials proposed a deal to Hungary whereby a portion of Brussels' funds would not be allocated for the purchase of weapons for Ukraine.
This proposal convinced Budapest not to block the program, but the Hungarian government is holding back on implementing its terms, not supporting the necessary legislation.
Hungary's decision came as G7 finance ministers were discussing a separate US plan to provide Ukraine with a loan on the condition of future profits from Russian assets. Ministers aim to agree on this program during the June G7 summit.
Orban's rebellion in NATO. "We are a non-participating state"
Orban goes even further. On Friday, he stated that it is time for Hungary to redefine its role in NATO. He emphasized that his country does not want to participate in missions outside the territory of the Alliance. He opposed Budapest's involvement in financial and military aid for Ukraine.
A new term has been coined to describe the Hungarian position: "non-participation." So, we are now a non-participating state, declared Orban. In his view, Hungary is the country most guided by the Alliance's "basic philosophy" among all NATO states.
The Orban government, which has long been critical of the West providing military aid to Kiev, blocked EU financial assistance for Ukraine worth 50 billion euros (about 53 billion dollars) until early February. Budapest also opposes Ukraine's integration with NATO and the EU, not formally blocking but opposing the start of accession negotiations between Brussels and Kiev.
