Hungary has blocked the adoption of a potential decision on issuing Eurobonds to finance Ukraine. The European Commission put forward this idea as an alternative to the "reparations position" at the expense of frozen Russian assets. This is reported by Politico, writes UNN.
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The loan in question is secured by frozen Russian reserves. However, one of the main opponents of the initiative remains Belgium, where the largest volume of these assets is stored. Brussels fears that in the event of lawsuits from the Kremlin, it will have to compensate for possible losses.
According to diplomats present at the ambassadors' meeting, Hungary opposed an instrument "that would be guaranteed by the EU's multiannual budget."
The European Commission insists that the proposed mechanism is safe and takes into account key Belgian concerns. The plan provides for the allocation of €115 billion for the development of the Ukrainian defense industry and another €50 billion for Kyiv's budget needs over five years.
However, according to Brussels, without a new financing instrument, Ukraine may face a shortage of funds as early as spring.
Negotiations will continue until the EU leaders' summit on December 18. However, officials admit that "no quick breakthrough is expected" given the position of Belgium and Hungary.
The proposed compensatory loan provides for the allocation of 115 billion euros to finance Ukraine's defense industry over five years, while 50 billion euros are to cover Kyiv's budget needs.