Orbán trying to help Trump by threatening to veto loan for Ukraine – Politico
Hungary's Prime Minister Viktor Orban has proposed a way for the United States to avoid providing a $50 billion loan to Ukraine if Donald Trump wins the presidential election, Politico reports, citing several anonymous EU diplomats.
Hungary has refused to agree to extend the period of sanctions on frozen Russian assets from six months to 36 months. The revenue from these assets was intended to fund the loan to Ukraine. The United States proposed the extension, which cannot be approved if any of the 27 EU member states objects, as Hungary has done. This could result in Washington not "participating substantially."
"If we don’t work this out [by extending the sanctions duration] it will cost the EU — including Hungary — more money," one European diplomat said.
However, a second diplomat noted that for Hungary, this cost is small, as Orban could use it to gain favor with Trump and "buy" his goodwill. EU representatives believe that Orban's blocking of the loan is a final show of solidarity with Trump and could "break transatlantic unity" regarding financial aid to Ukraine.
A third EU diplomat, who is also a representative of the European Commission, said that due to Orban's veto threats, the United States has indicated it might still consider participating in the loan, but at a lower amount. One option is to provide $5 billion, which corresponds to the approximate amount of Russian assets frozen in the United States. However, even in this case, the "lion's share of the bill" would still fall on the EU, the diplomat said.
Anonymous sources say that if Hungary uses its veto, the EU will likely arrange the loan on its own terms. Currently, a bill is being prepared at an accelerated pace to pay Ukraine up to 35 billion euros, equivalent to the U.S. share, which is planned to be agreed upon by the end of October. During this period, a meeting of the finance ministers of the G7 countries is also planned, where a decision on the loan to Ukraine could be made.
However, Europe does not want to increase its contribution, so according to the first diplomat, pressure will be put on Orban until he gives in.
On May 22, Ukraine and the EU signed an agreement outlining the mechanisms for managing and controlling the use of 50 billion euros under the Ukraine Facility plan.
On July 25, Finance Minister Sergii Marchenko said Ukraine expects to receive $50 billion from the G7 starting in early 2025.
On October 8, Reuters reported that Hungary would delay the EU's adoption of a key decision needed to provide Ukraine with funds under the mechanism agreed upon by the G7.
On October 9, it was reported that the EU had agreed to a 35 billion euro loan for Ukraine.
On October 11, media reported that the EU wants to create a new military aid fund for Ukraine because of Orban's veto.