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BBG-Hungary Seeks To Scale Back EU Aid For Now

UKRAINE

Bloomberg reporting that Hungarian PM Viktor Orban will look to hold back a sizeable proportion of the latest proposed EU aid package for Ukraine, arguing that EUR25bn would be sufficient for now, with the judgement on the provision of the remaining EUR25bn coming at the midpoint of the 2024-27 disbursement period. The story will come as a concern for Kyiv and its allies, given that the US Congress failed to include new spending on Ukraine in its latest stopgap measure to avoid a gov't shutdown.

  • Earlier today, FT reports suggested that the EU could unfreeze cohesion funding for Ukraine following judicial reforms. The unfreezing of funds has been a key demand of the Orban gov't in exchange for greenlighting aid for Ukraine. The demands also include protection for the Hungarian minority in Ukraine and the removal of OTP Bank from a list of 'war sponsors' (which Kyiv has acquiesced to).

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