Hungary is intentionally stalling approval of a procedural change related to the sanctions on Russia that is needed for a planned G7 loan to Ukraine, Politico reported on Monday, citing EU diplomats. According to the report, Budapest’s efforts are aimed at “helping” save Donald Trump from being saddled with the loan if he wins next month’s election.
The G7 plans to issue a €45 billion ($50 billion) loan to Ukraine using the windfall profits from the Russian assets frozen in the West to gradually repay the money. The European Commission pledged to contribute up to €35 billion, with the rest falling to the US and other G7 members.
However, Washington has been concerned about the long-term viability of the plan given that EU sanctions, including those targeting the frozen assets, have to be renewed by unanimous approval every six months. This prompted Brussels to propose extending the time between approvals to 36 months.
While most member states are reportedly in favor of the change, Hungary last week urged all involved to postpone the decision. Speaking to reporters after a ministerial meeting in Luxembourg, Hungarian Finance Minister Mihaly Varga suggested the EU should wait until the US presidential election next month and plan its next steps based on who wins.
“We believe that this issue should be decided – the prolongation of the Russian sanctions – after the US elections… We have to see in which direction the future US administration is going [on] this issue,” he stated, noting that the two candidates, Trump and Kamala Harris, are of opposing opinions on the Ukraine conflict, “one, in the direction [of] peace, and [the other] to continue to the war.”
According to Politico, Budapest has Trump’s interests in mind with its approach. Sources claim that if the EU is left to approve the loan without the US, Trump will have no obligation to support the initiative if he is elected and will be free to ditch the entire plan and, possibly, stop aiding Ukraine altogether, something he has already threatened to do.
“They [Hungary] don’t care if Europe has to pay more. It’s about helping Trump,” an unnamed EU diplomat was cited as saying.
“We are putting pressure, but so far [Hungarian Prime Minister Viktor] Orban is not caving,” said another. Sources added that the issue is considered critical as it could bring about a “break in transatlantic unity” on financial support for Ukraine.
Orban and Trump established close relations during the latter’s presidency, and the Hungarian leader has been an enthusiastic supporter of the Republican’s current campaign, saying earlier this month he would “open several bottles of champagne” if Trump is elected. Both have also advocated for a swift diplomatic solution to the Ukraine conflict, and Orban has said on more than one occasion that there would be a greater chance of reaching a peace deal if Trump wins.
The changes to the EU sanctions are expected to be discussed at the summit of EU leaders in Brussels scheduled for Wednesday.