Budapest earlier said the EU should postpone the decision on a loan to Kiev until after the US election
Hungary is deliberately delaying the approval of a procedural change related to Russian sanctions, a change necessary for a planned G7 loan to Ukraine, Politico reported on Monday, citing EU diplomats. According to the report, Budapest’s actions are aimed at “helping” Donald Trump avoid being burdened with the loan if he wins next month’s election.
The G7 plans to provide a €45 billion ($50 billion) loan to Ukraine, using the windfall profits from Russian assets frozen in the West to gradually repay the money. The European Commission pledged to contribute up to €35 billion, with the remaining funds coming from the US and other G7 members.
However, Washington has expressed concerns about the long-term sustainability of the plan, given that EU sanctions, including those targeting the frozen assets, require unanimous approval every six months. This prompted Brussels to propose extending the approval period to 36 months.
While most member states reportedly favor the change, Hungary last week urged all involved to postpone the decision. Speaking to reporters after a ministerial meeting in Luxembourg, Hungarian Finance Minister Mihaly Varga suggested that the EU should wait until the US presidential election next month and then determine its next steps based on the outcome.
“We believe that this issue – the prolongation of the Russian sanctions – should be decided after the US elections… We have to see in which direction the future US administration is going [on] this issue,” he stated, noting that the two candidates, Trump and Kamala Harris, hold opposing views on the Ukraine conflict, “one, in the direction [of] peace, and [the other] to continue to the war.”
According to Politico, Budapest’s actions are motivated by Trump’s interests. Sources claim that if the EU approves the loan without US involvement, Trump will have no obligation to support the initiative if he is elected and will be free to abandon the entire plan, potentially ending US aid to Ukraine, something he has already threatened to do.
“They [Hungary] don’t care if Europe has to pay more. It’s about helping Trump,” an unnamed EU diplomat was quoted as saying.
“We are putting pressure, but so far [Hungarian Prime Minister Viktor] Orban is not caving,” said another. Sources added that the issue is considered critical as it could lead to a “break in transatlantic unity” regarding financial support for Ukraine.
Orban and Trump developed a close relationship during Trump’s presidency, and the Hungarian leader has been a vocal supporter of the Republican’s current campaign, stating earlier this month that he would “open several bottles of champagne” if Trump is elected. Both have also advocated for a swift diplomatic resolution to the Ukraine conflict, and Orban has stated on multiple occasions that there would be a greater chance of reaching a peace deal if Trump wins.
The changes to the EU sanctions are expected to be discussed at the summit of EU leaders in Brussels scheduled for Wednesday.