Hungary

Hungary Blocks €35 Billion Loan for Ukraine Until US Elections

Hungary decided to block the €35 billion loan to Ukraine until the presidential election in the United States, according to Mihály Varga, Hungary’s Finance Minister. The EU planned to provide the funds at the expense of profits from frozen Russian assets, as reported by Euronews on Tuesday, 8 October.

Varga claims that Donald Trump and Kamala Harris, the two US presidential candidates, support different approaches to resolving Russia’s war against Ukraine.

The Hungarian minister emphasised that the EU should decide on the next actions based on the results of the American election.

“We believe that this issue should be decided—the prolongation of the Russian sanctions—after the US elections. That was the Hungarian position… We have to see in which direction the future US administration is going [on] this issue,” he added.

This relates to the US$50 billion loan package for Ukraine decided upon by G7 leaders, which would be repaid with revenues from blocked Russian assets.

Under the parameters of the plan, the EU should offer €35 billion, but this calls for a revision in the sanctions system that enables asset freezes inside the EU.

There was disagreement in Brussels over whether to establish this extension permanently or for periods longer than the typical half-year.

This is not the first time Hungary hinders financial or other aid to Ukraine.

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