Leaked: Hungary may contribute to establishment of arms purchase fund for Ukraine with special deal

A new compromise proposal from Brussels would take into account Hungary’s position that it will not supply arms to Ukraine. According to the plan, Hungarian state money for the new Ukrainian arms purchase fund would be spent on non-lethal weapons, Politico has learned from a document it received.

A special deal: helping Ukraine

In fact, under a further compromise advocated by Germany, Hungary might not even pay its annual HUF 23 billion (EUR 59.5 million) into the fund. Instead, it would directly assist the neighbouring country. Then, the amount could be deducted from the obligation to pay into the fund, Portfolio reports.

According to the newspaper’s Tuesday morning Brussels newsletter, at the EU summit this Thursday (1 February), the leaders of the member states are preparing to reach an agreement on the Ukraine Facility, replacing the European Peace Facility (EPF) with an annual EUR 5 billion. To this, the Hungarian government would also contribute with the aforementioned special deal.

Hungary helps, but differently

The Hungarian side had already indicated its willingness to do so at last Wednesday’s meeting of ambassadors of the member states, which is why the compromise proposal has been prepared, the paper explains. An annual amount of HUF 23 billion would have to be paid into this fund, which would be used for non-lethal equipment in Ukraine.

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In fact, under a further compromise advocated by Germany, it is even possible that Hungary would not pay that sum into the fund, but would directly assist Ukraine. This could then be deducted from the obligation to pay into the fund. In this way, the Hungarian government could continue to maintain that it does not supply arms to Ukraine, while at the same time helping the war-torn country in the background with non-lethal equipment.

Berlin supports the plan

Berlin also wants its “in-kind contributions” to Ukraine to be recognised. In essence, this would mean deducting from the Member States’ contributions to the EPF those items that Member States have provided to Ukraine bilaterally. Thus, there would be no need to make two-way payments. On the basis of the above, his concession could even be used by Hungary to assist Ukraine on a bilateral basis.

At Thursday’s EU summit, the leaders of the member states will also decide on a third, broader issue: the mid-term review of the EU’s 2021-2027 budget. It includes the EUR 50 billion package for Ukraine over 4 years and the EUR 5 billion Ukraine Arms Purchase Facility.