Europe Von der Leyen wants billions in new financial aid for Ukraine

EU Commission President Ursula von der Leyen wants to make promised financial aid for Ukraine of up to 35 billion euros possible despite Hungary's resistance. She made the announcement during a visit to Ukrainian President Volodymyr Selenskyj in Kiev. The money is to be part of the support package planned by the G7 group, which is to total up to 50 billion dollars. Von der Leyen's proposal still needs the approval of the majority of EU states, among others.

"Due to the relentless Russian attacks, Ukraine is dependent on the continued support of the EU," wrote von der Leyen. The money is another important contribution from the EU to the reconstruction of Ukraine.

The seven major Western industrialized nations (G7) had agreed new financial aid for Kiev at their summit in June. The loan of 50 billion dollars (around 44.76 billion euros) is to be secured by interest income from frozen Russian assets. Representatives of the EU take part in meetings of the G7.

The financial aid is to be divided between the countries and the EU. However, the USA only wants to participate if the Russian money remains permanently frozen. Hungary is opposed to this. According to EU rules, the freezing of funds must be decided unanimously by the 27 EU countries every six months. Efforts to freeze Russian assets for longer than six months have so far failed due to Hungary's veto.

Unanimity is not required for von der Leyen's plan

Von der Leyen wants the EU to grant Ukraine up to 35 billion euros in financial aid on its own - without the USA. According to the Commission, this requires the approval of the European Parliament and only a qualified majority of EU member states. This means that 15 countries representing at least 65 percent of the total EU population must agree. This would allow Hungary's veto to be circumvented.

However, even in this case, the proceeds from the frozen Russian assets would be used to repay the loan. Hungary could therefore still block the extension of the frozen funds. Should this happen, the EU budget could ultimately be liable for the financial aid. According to EU diplomats, however, this scenario is unlikely. Instead, this path should also encourage the G7 countries to also contribute to the 50 billion pledged.

Orban's controversial relations with Moscow

The government of Hungarian Prime Minister Viktor Orban maintains good relations with Russia. Since the beginning of the war in Ukraine, Orban has tried to prevent Kiev's EU accession negotiations, delayed Western sanctions and blocked financial and military aid. He accused the EU of bringing the conflict to Europe by providing aid to Ukraine. In his opinion, Ukraine cannot defeat Russia.

There was a long discussion within the EU about what should be done with the Russian assets. In the spring, it was agreed that 90 percent of the usable interest income from the custody of Russian central bank funds would be channeled into the EU fund for financing military equipment and training. The remaining ten percent will be used for direct financial aid.

SDA