Magyar's victory in Hungary does not guarantee Ukraine 90 billion euros from the EU - Media
Kyiv • UNN
Orbán's defeat in the elections offers hope for unblocking the EU loan, but bureaucracy will delay payments. Slovakia may also "intercept the veto" over the Druzhba oil pipeline.
Péter Magyar's victory in the Hungarian parliamentary elections and the country's potential unblocking of the decision to provide Ukraine with a €90 billion EU loan package do not guarantee a resolution of this issue for Kyiv in the near future. Euractiv writes about this, as reported by UNN.
Details
It is noted that Magyar's convincing victory over Viktor Orbán caused a "collective sigh of relief in Brussels – and in Kyiv": for almost a month and a half, the Moscow-friendly prime minister refused to approve the "crucial EU loan package for Ukraine," which the bloc's leaders, including Orbán himself, approved in December.
"Orbán's evasion, which comes in addition to his refusal to approve the bloc's 20th package of sanctions against Russia or to begin Ukraine's EU accession talks, follows repeated attempts by the self-proclaimed 'illiberal' leader to portray his former ally as a 'puppet' of Kyiv and Brussels during the election campaign."
It is indicated that, speaking to journalists on Monday, Magyar suggested, but did not confirm, that he would lift Budapest's veto on the loan. But he also expressed surprise as to why the scheme was blocked at all, given that Hungary had received an opt-out, meaning it bears no financial responsibility for repaying the interest on the loan or the principal.
EU officials and diplomats also warn that Orbán's repeated criticism could politically complicate for Magyar the immediate approval of the loan, which Orbán blocked over accusations that Ukraine is slow to repair the Druzhba oil pipeline.
The authors suggest that even if Magyar eventually lifts his veto, it will still take at least several weeks to disburse the loan: partly because the newly elected Hungarian prime minister will need some time to form a government. However, no less important is the fact that the bureaucratic apparatus for disbursing the loan has not yet been established.
The financing plan for Ukraine, which outlines how the funds will be spent and which the Commission presented earlier this month, still needs to be approved by member states. In addition, a "memorandum of understanding" on the funds specifically allocated to Ukraine's budget must be agreed upon between Brussels and Kyiv. A "loan agreement" detailing the scheme's specifics must also be developed.
The publication adds that even if all these conditions are met and Hungary's veto is eventually lifted, Slovakia – another Central European country ruled by a populist prime minister – could become a spoiler.
"Prime Minister Robert Fico, whose country is also heavily dependent on crude oil supplies via Druzhba, previously stated that Bratislava 'is ready to take over the baton from Hungary if necessary,' effectively committing to block the loan if oil supplies are not restored," the media summarizes.
Context
Hungary's next leader, Péter Magyar, stated that he would not obstruct Ukraine's receipt of a 90 billion euro European Union loan, which had been blocked by outgoing Prime Minister Viktor Orbán.
Orbán made hostility towards Ukraine a central element of his failed re-election bid. He initially approved the critical loan in December along with other EU leaders. But he later changed course, blaming everything on a blocked oil pipeline in Ukraine that had been damaged by a Russian drone strike.
Approval of funding requires unanimity among the 27 member states.