Today at 16:11
Hungary has halted a proposed €35 billion loan from the European Commission intended to support Ukraine’s economy, according to Euronews.
The Hungarian government stated it will delay its decision until after the U.S. presidential election on November 5.
The loan would be repaid using profits from Russia’s frozen central bank assets, easing the financial strain on the EU. Additional support from other G7 countries could bring the total aid package to €45 billion ($50 billion).
The United States is worried about the long-term stability of the unprecedented plan, given that EU sanctions on the frozen assets have to be renewed every six months by unanimity. This means that, at any moment, one member state could prevent the renewal, unfreeze the assets and throw the entire project into disarray.
Hungary, in particular, has acquired a reputation for blocking sanctions until it secures controversial concessions, some of which favour the Kremlin’s interests.
To placate Washington’s concerns, Brussels has proposed to extend the renewal period on the frozen assets from six to 36 months.
While most member states agree on the need to move quickly with the multi-billion credit given Ukraine’s financial distress, Hungary appears to be in no rush: for Budapest, the key amendment of the sanctions regime should wait until 5 November.
