EU sidesteps Hungary with €50bn aid plan for Ukraine
The European Union is revising its method of providing military support to Ukraine, partly due to Hungary's obstruction of previous measures. EU ambassadors are expected to agree on Wednesday to grant Ukraine aid amounting to 50 billion euros. These funds will be sourced from the interest accrued on frozen Russian assets.
As reported by RMF FM, the majority of the funds generated from these frozen Russian assets will be channeled into programs financed by the EU budget. Only 5 per cent will be allocated to the Peace Facility, which has traditionally been used to purchase weapons for Kyiv.
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This decision will not require unanimity, which allows EU leaders to sidestep Hungary's veto. It is the government of Viktor Orban, known for its pro-Russian stance, that has been obstructing the release of the eighth tranche of the Peace Facility for several months.
An EU diplomat described Hungary's actions as "shameless," as they prevent the distribution of funds to countries awaiting reimbursement for weapons supplied to Ukraine. For instance, Poland is waiting for a payment of 400 million pounds for this purpose, RMF FM notes.
Approximately 95 per cent of the funds from interest on frozen Russian assets will support various Ukrainian programmes funded by the EU budget. Consequently, the Peace Facility will have reduced sums available. The system where EU countries supply weapons from their stockpiles to Ukraine and then receive reimbursements from Brussels will become obsolete.
Previously, the situation was markedly different. Up to 90 per cent of the funds from interest on the frozen assets of the Russian Central Bank were directed to the Peace Facility. During Kyiv's last round of support, 1.4 billion euros were allocated for weapons. This was achieved through a special manoeuvre that bypassed Hungary's veto.
Budapest's actions have ultimately rendered further financing of aid to Ukraine from the Peace Facility unsustainable, leading to a re-evaluation of the EU's strategy.
