Orbán threatens to block loan to Ukraine to help Trump - Politico

According to the agency, Orbán 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 which 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 Orbán.

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

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 Orbán is throwing around threats, the US has made it clear that it is considering participating in the loan, albeit with a much smaller amount, 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, roughly equal to the amount of Russian assets frozen in the United States, and still leave Europe to foot 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.

Loan for Ukraine

Earlier, the G7 leaders agreed to provide Ukraine with a $50 billion loan to be funded by proceeds from frozen Russian assets.

In September, the European Commission announced that the EU would provide Ukraine with a €35 billion loan as part of the G7's commitment. The loan has already been approved by EU ambassadors.

However, Hungary, which currently holds the EU presidency, said it had decided to postpone the decision on the loan to Ukraine until after the US presidential election. Budapest also postponed the decision to extend sanctions against Russia.

Read more about the relations between Ukraine and Hungary and who Viktor Orbán is afraid of in RBC-Ukraine's article.