Why Hungary has blocked €50 billion in EU aid to Ukraine

It’s not a good time for Ukraine and its leader Volodymyr Zelenskyy. Even as lawmakers in the United States continue negotiations over the $60 billion in military and humanitarian assistance for Kyiv, leaders of the European Union were also unable to agree on a €50 billion package, owing to Hungary’s veto vote. Hungarian prime minister Viktor Orban refused to greenlight the funding to help prop up Ukraine’s government over the next four years. Posting on X, Orban wrote “Summary of the nightshift: veto for the extra money to Ukraine”. “We will come back to the issue next year in the #EUCO after proper preparation.” However, there is a silver lining for Ukraine; the bloc decided to open accession negotiations with the war-torn country. This marks a stunning reversal for Ukraine, which has long struggled to find back for its membership aspirations and faced fierce opposition from Orban. Still confused about it all? Want to know why Hungary blocked Ukraine’s aid? Read on to find out. What happened at the EU meet? On Thursday, the leaders of the European Union met to discuss the historic decision on bringing Ukraine into the 27-nation club and seal a key budget deal to throw a €50 billion lifeline to Kyiv’s flailing war economy. However, Hungary’s Orban threw a spanner in the works as he vetoed plans to grant Kyiv with the financial aid. In fact, the Hungarian leader came into the summit vowing to both block the plans by his 26 fellow leaders. “The European Union is about to make a terrible mistake and they must be stopped — even if 26 of them want to do it, and we are the only ones against it,” he said in comments released by his office. “This is a mistake, we are destroying the European Union.” Even at the start of the meeting, Orban argued that the country was not ready and that Ukraine’s entry would be bad for the bloc, and for Hungary. [caption id=“attachment_13506432” align=“alignnone” width=“640”] Hungary’s prime minister Viktor Orban arrives for an EU summit at the European Council building in Brussels. AP[/caption] However, according to a New York Times report, Orban at the behest of German chancellor Olaf Scholz left the room when it was time to raise objections to opening those negotiations, allowing the decision to be reached while he effectively abstained. However, he then blocked the aid package. He stated argued that Ukraine should not get such large amounts of money from the EU budget as it is not part of the bloc. Following the discussions, European Council president Charles Michel told the media, “I can inform you that 26 leaders agreed on the (budget negotiation). I should be very precise. One leader, Sweden, needs to consult its parliament, which is in line with the usual procedure for this country, and one leader couldn’t agree.” He further added that the leaders would reconvene in January to try to secure the aid for Ukraine. **Also read: Ukrainians are in ‘mortal danger’ if Western aid dries up, warns Olena Zelenska** Echoing similar comments, Dutch prime minister Mark Rutte said that 26 countries were in agreement to provide war-torn Ukraine with the money from the EU budget until 2027, but Hungary was against that decision, which requires unanimity. “We still have some time, Ukraine is not out of money in the next few weeks,” Rutte told reporters on leaving the talks. “We agreed with the 26 countries. Victor Orban, Hungary, was not yet able to do that. I am fairly confident we can get a deal early next year, we are thinking of late January.” Ukraine’s leader Zelenskyy expressed his delight with the EU’s announcement on the membership. He wrote on X, “This is a victory for Ukraine. A victory for all of Europe. A victory that motivates, inspires and strengthens.” Why is Hungary’s Orban against Ukraine? Orban’s veto of the aid to Ukraine is not surprising at all. The Hungarian leader has continuously expressed his opposition to Kyiv’s membership to the EU and argued that their time hasn’t come yet. He had earlier said, “Hungary’s perspective is clear: Ukraine is not ready for us to begin negotiations on its EU membership. It’s a completely illogical, irrational and improper decision.” Many have speculated that Orban’s opposition to Kyiv joining the EU comes from his own close ties with Russia and its leader Vladimir Putin. Since the war broke out, he has consistently spoken out against western sanctions aimed at punishing Moscow for the war. A December 2022 report by the Foreign Policy had in fact called Orban as ‘Putin’s Trojan Horse Inside the European Union’. And as recently as last week, the US ambassador to Hungary had criticised Orban, describing him as a leader who “embraces” Vladimir Putin. The Hungarian leader has courted Russia and met Vladimir Putin in Beijing in October, which he said he was “proud” to do. A photograph of Orbán and Putin shaking hands had drawn condemnation across the EU. Another reason for Hungary’s opposition to Ukraine, as experts note, could be Orban’s strategy to put pressure on the European Commission, which is holding back €13 billion in EU funds for Hungary over concerns that the country is falling foul of the EU’s standards on rule of law. And it seems his gamble paid off as the European Commission, the EU’s executive, agreed on to unblock €10 billion of that cash. Orban is yet to get his hands on the other €21 billion. When asked about it, Orban categorically stated: “That’s not our style.” [caption id=“attachment_13506462” align=“alignnone” width=“640”] European Council president Charles Michel makes a statement to the media regarding opening accession negotiations with Ukraine and Moldova during an EU summit in Brussels. AP[/caption] What happens next? With Hungary blocking the aid to Ukraine, the EU is weighing its next steps on how to go ahead on the issue. One of the options at their disposal is the EU’s Article 7 procedure, which is used when a country is considered at risk of breaching the bloc’s core values. Labelled as the ‘nuclear option’, it provides for the most serious political sanction the bloc can impose on a member country — the suspension of the right to vote on EU decisions. However, it is reported that the EU is reticent to use this measure. In light of such a situation, the remaining 26 countries are considering an alternative proposal of raising the cash for Ukraine. However, this process is lengthy and cumbersome. Addiitonally, it would also expose the cracks within the bloc on the matter of support for Ukraine – a feeling that Putin would relish and exploit further down the line. “We have various tools in our toolbox to ensure that we deliver on our political promises,” Michel said when he was asked if the 26 EU leaders who agreed on aid for Ukraine could just leave Hungary out of the process. With inputs from agencies