Will Hungary go along?

EU must change sanctions for Ukraine loan

EU Council President Charles Michel flanked by Ukrainian President Volodymyr Zelensky and Hungarian Prime Minister Viktor Orbán

(Bild: APA/AFP/Belga/BENOIT DOPPAGNE)

At their summit on Thursday, the EU heads of state and government reaffirmed their continued financial support for war-torn Ukraine. A 45 billion euro loan is to be in place by the end of the year. However, sanctions rules must be changed for this to happen. Hungary, on the other hand, has so far blocked steps in this direction.

The summit calls on EU foreign policy chief Josep Borrell and the EU Commission to negotiate with Ukraine about the funds it needs for military expenditure and reconstruction. The EU's share of a loan from the G7 states is currently 35 billion euros, but is to be reduced to 20 billion euros. In return, the Americans are demanding that the EU changes its sanctions regime against Russia so that the frozen central bank funds from Moscow remain frozen for a longer period of time. The loan is to be repaid from the income from these frozen assets.

Kiev must repay in the absence of unanimity
The statement emphasizes that the Russian assets should remain frozen until the end of the Russian war of aggression and compensation for the damage. Currently, the sanctions have to be renewed every six months. As a result, there is a risk that if there is no unanimous agreement among the EU states, the money will be released again and Ukraine will have to pay back the money itself. Changes to the sanctions mechanisms can only be agreed unanimously. 

However, Hungary's Prime Minister Viktor Orbán did not veto the summit declaration. The summit declaration on Ukraine also emphasizes that military support will be provided in "full respect of the security and defence policy of certain Member States" and should take into account the security and defence interests of all states. This is particularly important for neutral states such as Austria.

At the summit, President Volodymyr Selensky promoted his "victory plan" - including NATO membership.

(Bild: APA/AFP/Ludovic MARIN)

EU Council President Charles Michel called for "more military and financial support for Ukraine, it is urgent". The EU will continue to stand by Kiev "for as long as it takes". At the same time, however, the Union must accelerate its support. There should be no ambiguity in these messages. "Ukraine's destiny and future are in the EU," the Council President assured.

Selenskyj: "Need help as quickly as possible"
Ukrainian President Volodymyr Zelensky also took part in the summit and promoted his "victory plan". It was important for his country to receive the 45 billion euros pledged by the G7 states and the 35 billion euros from the EU "as quickly as possible" in order to close gaps in military supplies, said Zelenskyi. He also urgently called for additional air defense and long-range weapons capacities.

The Ukrainian head of state held separate talks on this topic with the heads of the USA, France, Germany and Italy. These countries should first reach agreement among themselves on this issue. If Ukraine does not receive the desired support from its partners for its "victory plan", "we will continue to fight", said the Ukrainian president. Asked by journalists about his meeting with Orbán, Selensky said: "We greeted each other, that's not a bad thing."