New EU strategy: how to help Ukraine without Hungary’s consent
24 June 2024 10:33
The European Union has found a way to circumvent Hungary’s blocking of financial and military aid to Ukraine. EU chief diplomat Josep Borrell said this in an interview with the Financial Times, according to "Komersant Ukrainian"
According to Borrell, the EU has created a legal workaround that will allow it to use the proceeds of frozen Russian assets this year to buy weapons for Ukraine. This decision could also pave the way for the G7 to provide Kyiv with $50bn.
Borrell explained that since Hungary abstained from the previous agreement to set aside the proceeds of frozen Russian assets, it “should not be involved in the decision on how to use this money”. He described the workaround as “complicated, like every legal solution, but it works”.
The diplomat also said that Brussels has offered Hungary a deal similar to the one that NATO struck with Prime Minister Viktor Orban last week. According to this proposal, Budapest could have abandoned measures in support of Ukraine in exchange for not vetoing measures taken by other allies. However, Hungary rejected the proposal.
Borrell described the EU’s offer to Hungary in detail:
“Your money will not be used to support Ukraine in any way. And this is not only about lethal weapons, but also about any support. Take your money out of the box. I don’t want to use your money”.
However, Hungary refused.
The EU’s top diplomat suggested that Budapest’s position was “linked to the strong ties they have with Russia”.
The bypass is scheduled to be discussed at a meeting of EU foreign ministers in Luxembourg on Monday.
The Financial Times notes that bypassing Hungary’s veto could also remove an obstacle to the G7’s efforts to raise a $50bn loan for Kyiv by December. This loan is to be repaid from future revenues, as decided at the summit in Italy.
However, the newspaper emphasises that Hungary still retains the ability to block EU sanctions that freeze Russian assets. This decision requires the unanimous approval of all 27 EU countries every six months.
Hungary vs Ukraine
Hungary is delaying the adoption of legislation that would allow Ukraine to receive up to €2 billion from the EU for weapons at the expense of profits from frozen Russian assets.
After a lengthy debate, EU member states agreed in May to use the proceeds of about €190 billion of frozen Russian assets held in the Belgian depository Euroclear to buy weapons for Ukraine. However, Hungary opposed this, refusing to provide unanimous EU support for each payment to Ukraine. At the same time, Hungary does not seem to object in general, but has concerns about the automation of payments.
The situation is further complicated by the fact that from 1 July, Hungary will take over the EU presidency for six months, which will give it more influence, making it even harder for EU officials to convince it.
