EU mulls over aid plan to bypass Hungary veto

A Russian missile strike on a commercial ship at a major Ukrainian Black Sea port is adding to risks for commodity exports just as farmers in the war-battered nation are in the middle of this year’s harvest.

European Union countries are considering a backup plan to push through much-needed aid for Ukraine in its fight to repel Russia in case Hungary vetoes the current €50 billion package, Bloomberg reports.

An alternative EU proposal would involve national guarantees from member states to raise funding in the markets should Budapest block the review of the EU’s long-term budget, which includes the package and requires unanimity, according to people familiar with the discussions.

Kremlin-friendly Hungarian Prime Minister Viktor Orbán has refused to supply arms to Kyiv and repeatedly said that Ukraine’s counteroffensive is doomed to fail, irking other EU capitals. And so far, he’s been unwilling to back a new EU aid package for Ukraine.

At the same time, Orban is banking on the release soon of at least some of the more than $30-billion in EU funds for his country that the bloc froze last year over concerns about democratic backsliding.

For Ukraine, the extended debate in Brussels over next year’s aid package is unsettling, particularly with the US Congress also at a stalemate over providing more assistance, particularly military aid, to Kyiv.

Speaking to European Parliament lawmakers on Tuesday, EU Budget Commissioner Johannes Hahn said the bloc cannot be blackmailed by any holdout members.

“Of course, you can make things more complicated, more cumbersome if you need unanimity, but we have seen in the past, being crystal clear, that you cannot stop us doing things,” he said. “Of course it might be more complicated, thinking about Ukraine. Of course, we can find a solution which is only including 26 member states.”

Some countries are in favor of finding an alternative solution soon for Ukraine funding to increase the pressure on Orbán, said the people, who spoke on the condition of anonymity.

However, Spanish Economy Minister Nadia Calvino, whose country holds the rotating EU presidency, and European Commission Vice-President Valdis Dombrovskis said on Thursday they aimed to reach an agreement within the long-term budget.