Hungary Hinders EU Initiative to Channel Frozen Russian Assets Towards Ukrainian Arms Support

Hungary has recently blocked a European Union (EU) plan to allocate revenues from frozen Russian assets towards purchasing arms for Ukraine. This development was disclosed by five individuals present at an EU ambassadors' meeting on Wednesday, as reported by Financial Times and relayed by European Pravda.

Following extensive deliberations, EU countries had agreed to utilize the revenues from approximately 190 billion euros held in the Belgian central securities depository Euroclear for Ukraine's arms procurement. However, the Hungarian ambassador opposed accelerating the payments, preventing a consensus necessary for such decisions, which require unanimity.

One of the sources expressed frustration, noting, "They are now blocking everything related to military support for Ukraine," hinting that Budapest's reservations might persist at least until the European elections next month.

Hungarian Prime Minister Viktor Orban has long maintained that the West cannot win the war in Ukraine, leading Hungary to stall various European decisions related to the conflict. However, Budapest eventually conceded under diplomatic pressure from the EU and Washington, including a significant aid package to Kyiv amounting to 50 billion euros.

To reach a consensus on using the profits from frozen Russian assets, EU officials proposed a compromise to Hungary, stipulating that their share of the funds allocated by Brussels would not be used for arms purchases for Ukraine.

This compromise persuaded Budapest not to veto the scheme, but it continues to delay implementing the terms by not supporting the necessary legislation. While fundamentally not opposed, Budapest has concerns about the automation of payments, according to individuals familiar with its stance.

Diplomats hope to resolve these issues before the scheduled payment in July. Hungary declined to comment on the matter.

On a related note, it was revealed on Saturday that the G7 finance ministers supported the idea of granting Ukraine a loan secured by revenues from frozen Russian assets to ensure Kyiv's financing post-2024.