Tuesday12 November 2024
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Orban threatens to block Ukraine's loan to assist Trump, according to Politico.

Hungarian Prime Minister Viktor Orban has threatened to block aid to Ukraine. This move could potentially benefit U.S. presidential candidate Donald Trump.
Орбан угрожает остановить кредит для Украины в поддержку Трампа, сообщает Politico.

The Prime Minister of Hungary, Viktor Orban, has threatened to block aid to Ukraine. This move could potentially benefit U.S. presidential candidate Donald Trump.

This information was reported by RBC-Ukraine citing Politico.

According to the publication, Orban is preparing to deliver a "big political gift" to Trump. He has devised a way to assist Trump in his electoral campaign while maneuvering out of the $50 billion loan that the U.S., EU, and G7 leaders have proposed for Ukraine. This would free Trump from his obligations, allowing him to tell voters that if elected, he would "not give Ukraine a cent."

Hungary threatens to disagree with changes to the rules regarding the extension of sanctions. The U.S. insists that the EU should extend sanctions against Russia for 36 months instead of six. This would safeguard partners from the risk that one of the EU countries might unfreeze Russian assets, which would help cover the loan.

European diplomats note that if Hungary blocks the decision, it will cost the EU more money. However, as Politico points out, this is not a significant cost for Orban.

"They [Hungary] don't care if Europe has to pay more. It's about helping Trump," an EU diplomat said.

If Brussels and Washington jointly sign off on the €35 billion loan, a re-elected Trump would be obligated to service it for years. But if the loan is approved without U.S. involvement, he would not have such an obligation.

While Orban issues threats, the U.S. has indicated that it is considering participating in the loan, albeit with a significantly lower amount, even if the EU fails to extend the sanctions period. This was stated by the European Commission.

One option is for Washington to contribute $5 billion, which is approximately equal to the amount of Russian assets frozen in the U.S., while still leaving Europe to cover the lion's share of the bill. It is also noteworthy that Japan recently signaled it may withdraw from the loan if the U.S. does not participate.

Loan for Ukraine

Recall that earlier, G7 leaders agreed to provide Ukraine with a $50 billion loan, which will be backed by revenues from frozen Russian assets.

In September, the European Commission announced that the EU will provide Ukraine with a €35 billion loan as part of its G7 commitments. This has already been agreed upon by ambassadors from EU countries.

However, Hungary, which currently holds the EU presidency, stated that it has decided to postpone the loan decision for Ukraine until after the U.S. presidential elections. Budapest also delayed its decision on extending sanctions against Russia.

Learn more about the relations between Ukraine and Hungary, and who Viktor Orban fears, in the material by RBC-Ukraine.