Orban threatens to block loan to Ukraine to help Trump

Hungarian Prime Minister Viktor Orban threatens to block aid to Ukraine. This step may help US presidential candidate Donald Trump.

This was reported by RBC-Ukraine with reference to Politico.

According to the publication, Orban is preparing to give a “big political gift” to Trump. He has figured out a way to help Trump in his election campaign and get out of the $50 billion loan that the US, EU, and G7 leaders have offered to Ukraine. This would let Trump off the hook, allowing him to tell voters that if elected, he “will not give Ukraine a dime.”

Hungary is threatening not to agree to a change in the rules on how long sanctions are extended. The US insists that the EU should extend sanctions against Russia for 36 months instead of six months. This would allow the partners to protect themselves from the possibility that one of the EU countries could freeze Russian assets that would help close the loan.

European diplomats emphasize that if Hungary blocks the decision, it will cost the EU more money. However, according to Politico, this is not a big price for Orban.

“They [Hungary] don't care if Europe has to pay more. It's about Trump's help,” the EU diplomat said.

If Brussels and Washington jointly sign a €35 billion loan, the re-elected Trump will be obliged to service it for years. But if the loan is approved without the United States, he will have no such obligation.

While Orban is throwing around threats, the US has made it clear that it is considering participating in the loan, albeit with a much smaller amount, and even if the EU fails to extend the sanctions period. This was stated by the European Commission.

One option is for Washington to contribute $5 billion, which is roughly equal to the amount of Russian assets frozen in the United States, and still leave Europe to pay the lion's share of the bill. It is also important that Japan has recently signaled that it may withdraw from the loan if the United States does not participate.

Author - Olena Madiak, 14/10/2024