Hungary Blocks 50 Billion-Euro Financial Package for Ukraine

Hungary's Prime Minister Viktor Orban looks on during the EU-Western Balkans leaders' meeting in Brussels on June 23, 2022. Ludovic Marin/AFP via Getty Images

Hungary has blocked a roughly 50 billion-euro ($55 billion) European Union financial aid package for Ukraine shortly after EU leaders in Brussels officially began membership talks with the war-torn country and its neighbor Moldova—a process that has long been sought by both nations.

Hungarian Prime Minister Viktor Orban confirmed the veto of the long-term economic support package on X, formerly known as Twitter.  The aid package requires the unanimous support of all 27 EU member states.

“Summary of the nightshift: veto for the extra money to Ukraine, veto for the MFF [Multiannual Financial Framework] review. We will come back to the issue next year in the #EUCO after proper preparation,” he wrote on Dec. 14.

European Council President Charles Michel told reporters that the other 26 EU leaders planned to meet again in January to try to work out an agreement for war-town Kyiv, whose fight against Russian forces is nearing its second anniversary.

Its counteroffensive has so far failed to make major gains.

“We still have some time, Ukraine is not out of money in the next few weeks,” Dutch Prime Minister Mark Rutte told reporters following the negotiations.

“We agreed with the 26 countries. Victor Orban, Hungary, were not yet able to do that. I am fairly confident we can get a deal early next year. We are thinking of late January.”

Mr. Orban’s block will no doubt serve as another blow to Ukrainian President Volodymyr Zelenskyy after he failed to persuade Republican lawmakers in the United States to approve an additional $61 billion in military aid for Ukraine from the United States during his latest visit to Washington.

Lawmakers have insisted that the additional assistance for Ukraine be tied to increased funding for U.S. border security amid the ongoing immigration crisis.

However, the veto likely didn’t come as a surprise, given that Hungary had earlier opposed starting EU accession talks, with Mr. Orban calling such discussions “irrational” and “inappropriate.”

‘A Victory for All of Europe’

The Hungarian leader has also argued that Ukraine shouldn’t receive the billions of dollars in funding from the EU as it isn’t yet part of the bloc and the money could be at risk of corruption.

Still, during the Dec. 14 accession talks, Mr. Orban agreed to step out of the negotiating room to allow the other EU leaders to reach a consensus decision without him.

Critics have accused Mr. Orban of holding Kyiv hostage in an effort to force Brussels to release billions of euros in EU funds that have been frozen amid rule-of-law concerns.

However, the European Commission on Dec. 13 agreed to release 10.2 billion euros ($11 billion) of those frozen funds after finding that Hungary had adopted legislation that “significantly strengthens” the independence of its judiciary.

Overall, the EU funding that remains locked for Hungary amounts to about 21 billion euros ($23 billion).

Despite the veto on the funding, Mr. Zelenskyy welcomed the start of the ascension negotiations, dubbing them “a victory for Ukraine. A victory for all of Europe.”

The talks are just the first step in what will likely be a years-long process in Ukraine finally becoming a member.

“History is made by those who don’t get tired of fighting for freedom,” Mr. Zelenskyy said.

On Dec. 14, the EU granted Georgia candidate status, Mr. Michel confirmed on X.

Mr. Michel said the EU will also open negotiations with Bosnia and Herzegovina “once the necessary degree of compliance with the membership criteria is reached” and that it has “invited the commission to report by March with a view to taking such a decision.”

Reuters and The Associated Press contributed to this report.