EU denies rumors of sanctions against Hungary to approve Ukraine aid

"The document referred to in the Financial Times article is a background note written by the secretariat of the council under its own responsibility which describes the current status of the Hungarian economy," the statement by the senior EU official said.

"This is a factual paper which does not reflect the status of the ongoing negotiations. The note does not outline any specific plan relating to the [long-term EU budget] and Ukraine Facility, nor does it outline any plan relating to Hungary," it said.

According to the official, negotiations on the revision of the EU budget, which includes assistance to Ukraine amounting to 50 billion euros, are ongoing and based on finding a compromise.

Hungary blocked the allocation of 50 billion euros for Ukraine at the end of last year. It became the only country to vote against such a decision. The issue is expected to be reconsidered at the summit scheduled for February 1.

Backstory

On January 29, the Financial Times reported that the European Union has plans for economic sanctions against Hungary. Allegedly, these sanctions could be applied if the country refuses to support aid to Ukraine.

Such restrictions could lead to the collapse of the Hungarian economy. In particular, the country faces the loss of jobs and a slowdown in economic growth.