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Politico: EU has a backup plan to fund Ukraine even if Orbán continues blocking the loan
European Union countries are preparing an alternative plan to keep Ukraine financially afloat even if Viktor Orbán’s Hungary continues to block a major EU loan package intended to support Kyiv during the war.
According to a report by Politico, EU diplomats say Ukraine will still receive significant funding from European countries even if Hungarian Prime Minister Viktor Orbán and Slovak Prime Minister Robert Fico refuse to lift their objections to a EUR 90 billion loan designed to support Ukraine’s war effort against Russia.
EU leaders are expected to discuss the issue at an upcoming summit in Brussels, where they hope to convince both leaders to approve the package. The loan is intended to cover roughly two-thirds of Ukraine’s financial needs in the war against Russia until the end of 2027.
Baltic and Nordic states preparing EUR 30 billion fallback
If the EU loan remains blocked, several northern European countries are reportedly preparing a workaround.
Diplomats familiar with the negotiations say Baltic and Nordic states are considering providing up to EUR 30 billion in bilateral loans to Ukraine.
Because these would be agreements between individual governments and Kyiv, they would not require approval from all EU member states, meaning Hungary could not veto them.
Separately, the Netherlands is reportedly preparing long-term financial support as well. Dutch Finance Minister Eelco Heinen told EU counterparts that his government has set aside EUR 3.5 billion annually for Ukraine until 2029 through bilateral assistance.
Brussels: “We will deliver the loan one way or another”
European officials have signalled that they are determined to ensure Ukraine receives financial support regardless of political obstacles.
EU Economy Commissioner Valdis Dombrovskis told Politico that tensions with Hungary over EU decisions are not new.
“It’s not the first time we are facing similar difficulties with Hungary,” he said, adding that the EU would secure the financing “one way or another.”
The EU had previously warned that Ukraine could face severe budget problems as early as mid-March. However, an International Monetary Fund support package worth more than EUR 8 billion has helped extend Kyiv’s financial stability until at least May.
Orbán seen as the key obstacle in Brussels
Diplomats cited by Politico reportedly view Orbán’s Hungary as the main obstacle to approving the EU loan, while Slovakia is seen as less of a long-term blocker.
Some EU officials and Ukrainian representatives are also closely watching Hungary’s upcoming elections. According to diplomats involved in the discussions, there is speculation that opposition leader Péter Magyar might take a more cooperative approach toward EU financial support for Ukraine if he were to win.
If you missed it:
Yes, well, the whole reason for the EU “loan” was, that the politicians could tell their voters: “it isn’t your money we send there.”
So now, they send their voters’ money there.
I mean, sure. I guess if those voters are dumb enough to accept that… but something tells me, that the cost of this for those politicians will be greater then they anticipated.