Hungary is now in the hands of the EU’s share of the international 45 billion euro financial package for Ukraine.
Finance minister Riikka Purra (ps.) says that Hungary is still stalling changes to the sanctions legislation for central bank funds frozen from Russia.
In practice, Hungary’s opposition now depends on what kind of responsibility the United States is taking for Ukraine’s international aid package.
– 26 of the member states are ready for this change, but the Hungarian presidency is still holding back the decision, Purra said on Tuesday.
It is an international package of 45 billion euros, also known as the G7 package, according to the group of rich countries.
The EU’s idea is to lend Ukraine with the proceeds of Russia’s frozen central bank funds, so that the costs of the loan and the reduction of the capital would not burden Ukraine’s public finances.
The EU’s share of the support depends on what others are willing to pay. The United States has tied the size of its own contribution to the fact that the EU changes its sanctions legislation.
The United States would be willing to pay 20 billion euros for the package if the EU reviewed its sanctions regulation regarding the frozen funds. The sanctions review cycle should be changed from the current half year to three years.
However, Hungary’s behavior may lead to the EU’s contribution being higher than necessary. This is what will happen if Hungary blocks the change in the sanctions legislation.
Bite: Hungary awaits US elections
According to Purra, Japan, Canada and Britain have already expressed their willingness to participate in the loan mechanism.
The EU is to pay a maximum of 35 billion euros into the loan mechanism, depending on what the others eventually pay.
According to Purra, it is known that Hungary wants to wait for the US presidential election before making decisions. Others consider it urgent.
Hungary has repeatedly blocked actions against Russia’s war of aggression and armed support of Ukraine.