Hungary blocks €50bn of EU funding for Ukraine

Hungary has obstructed €50 billion ($55 billion; £43 billion) in EU assistance for Ukraine, mere hours after an agreement was reached to initiate membership talks. Following Thursday’s discussions in Brussels, Hungarian Prime Minister Viktor Orban stated, “Summary of the nightshift: veto for the extra money to Ukraine.” Although EU leaders indicated that aid negotiations would resume early next year, Ukraine, heavily reliant on EU and US funding in its struggle against Russian forces, faces critical financial challenges.

Orban’s announcement of the aid blockage coincided with the EU leaders’ decision to commence membership talks with Ukraine and Moldova and grant candidate status to Georgia. Despite Hungary’s historical opposition to Ukrainian membership, it did not veto the move. Orban, emphasizing his efforts to dissuade EU partners during the eight-hour negotiation, expressed doubt about Hungary’s Parliament potentially preventing Ukraine’s path to EU membership.

Dutch Prime Minister Mark Rutte, acknowledging Hungary’s dissent, expressed confidence in reaching a deal early next year, possibly in late January. The aid package, crucial for sustaining public services, wages, and pensions in Ukraine, received approval from all but one EU leader. Michel, the European Council President, affirmed that the matter would be revisited in early 2023 to seek unanimity.

Ukraine’s quest for a $61 billion US defense aid package is also delayed due to disagreements among American lawmakers. With Ukraine’s counter-offensive stalling against Russian forces, concerns mount about potential funding shortages. Despite President Zelensky’s elation over the EU’s membership talks, the joy is tempered by Hungary’s aid blockade, labeled a “huge frustration” by Ukrainian politician Kira Rudik.

While the EU’s decision to initiate accession talks with Ukraine, Moldova, and Georgia is seen as historic and supportive, challenges lie ahead. The lengthy process of EU membership involves passing reforms in areas such as the rule of law and the economy. Apart from Hungary, there is skepticism among other EU members about expanding the bloc beyond the current 27, often accompanied by calls for fundamental reforms. Nonetheless, the move provides a morale boost for Ukraine amid its ongoing struggle and global attention diverted to conflicts in the Middle East.