Published October 14, 2024
Hungary’s Viktor Orbán is blocking an EU loan for Ukraine, siding with 2024 U.S. presidential candidate Donald Trump to help him avoid future aid if re-elected, despite the cost to Europe
Politico reported the information.
Prime Minister Viktor Orbán is crafting a major policy shift aligned with Trump’s interests, aiming to allow Trump, if he wins in November, to withdraw from a $50 billion loan package for Ukraine, which was jointly proposed by the U.S., EU, and G7. This would enable Trump to assure his voters he won’t provide further aid to Ukraine.
Hungary has declared it won’t agree to a rule change that would let the U.S. have a significant role in the loan until after the American elections. The loan, intended to support Ukraine against Russia, would be repaid using profits from over $250 billion in Russian assets frozen in Western countries after Russia’s 2022 invasion, with Europe holding the majority.
As the publication notes, timing is critical. The U.S. is pushing for the EU to extend its sanctions period from six to 36 months to safeguard these funds. Without the extension, individual EU nations could unfreeze the assets, forcing European taxpayers to foot the bill. While most EU leaders back this extension, Orbán refuses, and under EU law, unanimous approval from all 27 member states is required to change the sanctions rules.
Ukraine is in urgent need of new financial support to endure the winter and Russia’s attacks on its infrastructure, yet Orbán’s stance risks blocking the U.S. from being a significant contributor. Despite this, Europe is likely to proceed with its share of the funding.
“If we don’t work this out [by extending the sanctions duration] it will cost the EU — including Hungary — more money,” said an EU diplomat. Orbán seems unfazed, prioritizing his relationship with Trump over the potential cost to Europe. As another diplomat put it, “This is about helping Trump, not Europe.”
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SOURCE: www.global.espreso.tv
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Hungary’s latest attempt to disrupt Ukraine aid isn’t about money. It’s about making friends with Donald Trump.
Viktor Orbán’s blocking of the loan is the latest example of alignment between Donald Trump and the Hungarian prime minister. | Federick Florin/AFP via Getty Images
Published October 14, 2024
Hungarian Prime Minister Viktor Orbán is preparing to serve up a major policy gift for his best friend across the Atlantic, former United States President Donald Trump.
He’s concocted a way to let Trump, if he successfully makes it to the White House for a second term come November, wriggle out of a $50 billion loan the U.S., the European Union and leaders of the G7 offered to Ukraine to back its fight for survival against Russia. That would let Trump off the hook, allowing him to tell Republican voters that, if elected, he won’t give Ukraine another cent.
Hungary says it won’t consent to a change in rules that would allow Washington to play a major role in the loan until after the U.S. election.
The loan would be repaid entirely using the windfall profits generated by over $250 billion of Russian assets that were immobilized across Western countries after Vladimir Putin’s invasion of Ukraine in February 2022. Europe has more skin in the game as it holds most of the funds.
And timing is everything. Washington insists that the EU needs to extend the sanctions renewal timeframe to at least 36 months. Under current rules, the EU’s sanctions come up for renewal every six months, which increases the likelihood of a single country unfreezing the assets — which would force national governments to tap into taxpayers’ money to repay the loan.
While every other leader is in favor of extending the sanctions rollover period to 36 months as requested by the U.S., Orbán refuses. According to the EU’s own rules, all 27 member countries need to approve any changes to the sanctions rules.
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SOURCE: www.politico.eu
