Hungary Wants to Divide into Two Tranches €50 Billion in EU Support for Ukraine

Wednesday, 4 October 2023

Hungary has proposed splitting in two the European Union's upcoming €50 billion aid package for Ukraine, raising concerns about reduced economic support for Kyiv.

As reported by Bloomberg, last week, Hungary informed the EU member states that the approval of €25 billion euros would be enough for Ukraine at this stage. Brussels planned a €50 billion programme to support Ukraine for the 2024-2027 period.

The sources said Budapest wants the EU to assess "at the midpoint" of the disbursement period when another €25 billion euros could be provided to Ukraine, depending on its needs.

Bloomberg, citing people familiar with the discussions, said the EU could unblock almost €13 billion euros in funding for Hungary this year to push Viktor Orbán's government to ease its resistance to allocating support to Ukraine. Earlier, the Financial Times also reported on this.

Following these efforts, Ukraine removed the Hungarian OTP Bank from the list of international sponsors of the war, satisfying one of Budapest's key demands.

The €50 billion programme for Ukraine is part of the EU's long-term budget review, which also provides for additional funding for migration and the latest technologies for a total of €66 billion.

The European Commission hoped to sign an agreement on the budget by the end of the year. But disagreements about its overall review have undermined efforts to reach a timely decision.

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