Orbán Cabinet Maintains Block on EUR 45 Billion Loan for Ukraine Pending US Elections
The upcoming United States presidential election in November has significant implications not only for the US but also for countries around the world, including Hungary. Prime Minister Viktor Orbán and his government have tied Hungary’s fate to the outcome of the election, particularly in relation to incumbent President Donald Trump.
If Trump is re-elected, Orbán is poised to not only solidify his position in Hungary but also strengthen his influence in Europe. The Orbán government’s close alignment with Trump has led to strategic decisions, including a possible boycott of a significant EU loan for Ukraine until the election results are confirmed.
Recently, Hungary made headlines for delaying a crucial decision regarding a €45 billion loan for Ukraine, which would be funded by frozen assets of the Russian central bank. The United States has expressed concerns about the sustainability of the loan scheme, particularly in light of EU member states’ ongoing support for anti-Russia sanctions.
Hungary’s track record of voting against EU decisions, as well as using its veto power to advance its own interests, has raised eyebrows in Brussels. The Orbán government’s controversial actions, such as exempting individuals linked to Putin’s war in Ukraine from sanctions, have underscored Hungary’s alignment with Russian interests.
Despite initial hesitation, Hungary eventually gave the green light for the loan scheme this week, under pressure from other EU member states. The Council of Europe agreed on the financial aid package for Ukraine, with Hungary playing a key role in the decision-making process as the current President of the EU.
However, the issue of prolonging sanctions against Russia remains unresolved, as Hungary continues to delay a final decision until after the US election on 5 November. The Hungarian government believes that the outcome of the presidential race will impact the future of relations with Ukraine and Russia, with Finance Minister Mihály Varga emphasizing the importance of waiting for the election results before taking further action.
The contrasting views of the two US presidential candidates, with Trump advocating for peace and his opponent Kamala Harris supporting Ukraine’s war efforts, further complicate Hungary’s stance on the loan scheme. As the geopolitical landscape continues to shift, Hungary’s alignment with Trump’s policies may have far-reaching consequences for the country’s foreign relations and domestic politics.
