EU Proposes Up to 25 Trillion Won Support for Ukraine Next Year... Hungary Opposes

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] The European Union (EU) Commission proposed on the 9th (local time) to support Ukraine with up to 18 billion euros (approximately 24.7 trillion won) next year in the form of long-term loans, but Hungary expressed opposition, stating it would not contribute to the joint support, according to major foreign media reports on the same day.

The Commission announced in a press release that it proposed to member states a plan to support Ukraine with a total of about 18 billion euros by providing 1.5 billion euros monthly starting from January next year as a follow-up measure to the EU Council meeting held at the end of last month. Specifically, the Commission plans to borrow funds from the EU capital markets and support Ukraine in the form of long-term loans with a 35-year term.

The monthly 1.5 billion euros is about half of the estimated necessary budget (30 to 40 billion euros) previously calculated by the Ukrainian authorities and the International Monetary Fund (IMF). The EU emphasized that other major countries in the international community should provide similar support.

Volodymyr Zelensky, President of Ukraine, welcomed the Commission’s announcement on the same day via Twitter, calling it "a demonstration of true EU solidarity."

For the Commission’s plan to be realized, it must go through approval procedures by all 27 member states and the European Parliament. Since Hungary has already publicly expressed opposition even before the Commission’s detailed plan was announced, doubts have been raised about whether the plan can be implemented as scheduled from early next year.

Mih?ly Varga, Hungary’s Minister of Finance, clearly stated in a statement the day before, "Hungary has made it clear that it is ready to support Ukraine, but we do not want to be involved in any new loans that the EU will take on," expressing opposition.

Viktor Orb?n, Prime Minister of Hungary, is considered one of the few EU member state leaders who have maintained a relatively close relationship with Russian President Vladimir Putin even after the outbreak of the Ukraine war, showing a pro-Russian stance.

Valdis Dombrovskis, EU Commissioner for Trade, stated at a press conference that he intends to discuss the matter with Hungary in response to related inquiries and said, "I hope we can find a solution."