Budapest softens stance, Ukraine military aid secured
Hungary has reversed its stance on a €5 billion military aid fund for Ukraine, potentially thawing a months-long impasse and ensuring a stable supply of weapons for Kyiv, Bloomberg has reported.
The decision, reported by Bloomberg, marks a significant shift for Prime Minister Viktor Orbán, who earlier this week opposed reforming the current EU mechanism.
While the reason for this abrupt U-turn remains unclear, it coincides with mounting pressure on Hungary to approve Sweden's NATO membership. Budapest currently stands as the lone obstacle, following Turkey's recent ratification.
This pivot follows Hungary's December rejection of a separate €50 billion economic aid package for Ukraine, triggering an EU leaders' summit scheduled for February 1st. The meeting aimed to either reach a compromise with Orbán or find a way to bypass Hungary's veto.
Historically, Hungary has been a thorn in the side of its EU partners on Ukraine-related issues. For months, it blocked €500 million in Peace Support Facility payments to member states providing aid to Kyiv, citing the blacklisting of Hungarian bank OTP by Ukraine. Following OTP's removal, Budapest continued to demand guarantees against future sanctions.
Meanwhile, the EU itself actively seeks to modernise the €5 billion military aid fund for Ukraine. "Political agreement on the proposed objective is urgently needed," urged the EU's foreign policy department, suggesting an increase in the fund's ceiling specifically dedicated to Ukraine.
The department's proposal aims to bridge diverging opinions by redesigning the fund's management structure, including establishing repayment rates and offering larger incentives for joint European-Ukrainian industrial initiatives.
Translation by Iurie Tataru
