While the Hungarian PM declares that he will open “several champagne bottles” if Trump wins the election in November, his actions at Brussels threaten a $50 billion loan package from Russian assets frozen in order to help Ukraine.
Politico reports that the Hungarian prime minister Viktor Orban has been trying to block a $50 billion loan package to Ukraine, which would be funded by frozen Russian assets. This could benefit Donald Trump, former US president, if he is re-elected.
The G7 countries are considering using the $300 billion in frozen Russian assets to support Ukraine’s recovery and defence during the ongoing conflict. The G7 countries have decided to lend Ukraine $50 billion from these assets before the end of 2024. It could provide Ukraine with a strategic security cushion for the next five-year period, ensuring a constant supply of weapons while protecting against political volatility in Western countries. Hungary has repeatedly blocked or delayed financial assistance for Ukraine while the G7 and EU are exploring legal mechanisms for transferring or allocating these funds.
According to Politico, the Hungarian leader’s stance may allow Trump to avoid committing long-term financial assistance for Ukraine if reelected.
Orban refuses to extend the EU sanctions renewal timeframe, which Washington requested to ensure US participation in the loan. This extension would reduce risk of a single nation unfreezing Russian assets that are meant to pay the loan.
Orban’s actions are consistent with his recent public support of Trump. According to reports, the Hungarian Prime minister said he would “open several bottles of champagne” should Trump win the November election.
Despite Hungary’s obstruction the EU is considering proceeding independently with the loan. This could lead to higher costs for European nations, including Hungary.
Another EU diplomat told Politico that if we don’t figure this out [by extending sanctions duration], it will cost the EU – including Hungary – more money.
The US is said to be exploring alternative options. One of them includes a reduced contribution, which would be $5 billion. This would roughly equal the assets that it holds in Russia.
Japan has also indicated that it may withdraw from the loan agreement should the US not participate.
Giorgia Mello, the Italian Prime Minister, said that the loan would not be funded by the EU, but by the USA, Canada and Great Britain, as well as, possibly, Japan.
Later, the European Commission offered to provide up 35 billion euros depending on how much the other allies would contribute.
The EU has so far allocated EUR160million from the frozen Russian assets for Ukraine’s humanitarian aid needs. This is especially true as winter approaches.
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