Hungarian Prime Minister Viktor Orban criticized the European Union‘s (EU)’s €90 billion ($105.41 billion) loan to Ukraine, stating that 24 member states jointly granted a war loan to a country outside the bloc for the first time.
Orbán argued that repayment tied to military victory creates financial interest in conflict continuation rather than peace.
“We are not looking for a fast track into war, but for an exit towards peace,” Orbán stated on X on Friday.
Financing Structure Shifts To Capital Markets
The EU, after dropping the initial unprecedented plan to finance Kyiv with frozen Russian assets will now fund the loan through joint debt raised on capital markets backed by the bloc’s budget.
German Chancellor Friedrich Merz said, “This sends a clear signal from Europe to Putin: This war will not be worth it.”
Merz, who had advocated for a reparations loan supported by frozen Russian assets, noted that Russian assets would remain frozen until Russia compensates Ukraine.
EU Council President Antonio Costa added that the decisions taken by European leaders are a crucial contribution to achieving a just and lasting peace in Ukraine.
Some EU Countries Oppose
Not every country agreed to the loan. Hungary, Slovakia, and the Czech Republic said no and didn’t support Ukraine.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund and a close ally of President Vladimir Putin, called the blocking of the Russian reserves plan ‘a major win for law and common sense.’
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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