Orban aims to gift Trump by blocking a $50 billion loan for Ukraine, according to Politico.

The Prime Minister of Hungary, Viktor Orbán, is attempting to obstruct the provision of aid to Ukraine in the form of a loan amounting to $50 billion. In doing so, he is preparing a political gift for Donald Trump in the event that he becomes President of the United States. Trump is an opponent of American assistance to Ukraine and would be pleased to avoid fulfilling commitments that America has already made, as reported by Politico on October 14.

The publication claims that Orbán has devised a way to allow Trump to sidestep the $50 billion loan that the U.S., European Union, and G7 leaders have proposed to Ukraine to support its fight against Russia, should he become President. This would enable Trump to tell Republican voters that if elected, he would not give Ukraine a single cent.

"Hungarian Prime Minister Viktor Orbán is preparing to deliver a significant political gift to his best friend across the Atlantic, former U.S. President Donald Trump," Politico notes.

Budapest has stated that it will not agree to any changes in the rules that would allow Washington to play a crucial role in the loan until after the U.S. elections. The publication notes that the loan will be fully repaid from the profits generated by over $250 billion in frozen Russian assets in the West.

Washington insists that the EU must extend the sanctions for at least 36 months. Under the current rules, EU sanctions must be renewed every six months, increasing the likelihood that one country will unfreeze assets, which would force national governments to use taxpayer money to repay the loan.

"While all other leaders support extending the sanctions period to 36 months as requested by the U.S., Orbán refuses. According to EU rules, all 27 member states must approve any changes to the sanctions rules. Ukraine urgently needs fresh funding from its Western allies to maintain its state and prepare for what is expected to be a harsh winter, as Russia targets the country's war-torn energy infrastructure. And now, thanks to Orbán, the U.S. is unlikely to take a significant role. However, Europe is likely to move forward," the article states.

One EU diplomat, speaking on condition of anonymity, told Politico that failing to resolve the issue by extending the sanctions would cost the EU—specifically Hungary—more money. Meanwhile, another diplomat stated that Hungary does not care if Europe has to pay more. Because it's about helping Trump.

If the EU and the U.S. jointly sign a loan of €35 billion, Trump would be obligated to service it for years. But if the loan is approved without the U.S., he would have no such obligation, the publication emphasizes.

"What seems like a technical hitch is critically important to Washington—and this may be enough to disrupt transatlantic unity regarding support for Ukraine, at least on the financial front. While Orbán threatens to use his veto in Brussels, the U.S. has made it clear that it is considering participating in the loan—albeit with a significantly smaller amount—even if the EU cannot extend the sanctions period, said a third EU diplomat and European Commission official," Politico points out.

One option involves a U.S. contribution of $5 billion, which is roughly equivalent to the amount of Russian assets they hold within the country. And this still forces Europe to foot the lion's share of the bill, the publication adds.

Destructive Position of Hungary

As reported by Informator, Hungary announced in October that it had decided to postpone a final decision on the $50 billion loan for Ukraine until after the U.S. presidential elections. This was reported by Hungary's Minister of Finance, Mihály Varga, on October 8.

After that, the U.S. confirmed its readiness to provide its share of the $50 billion, although the European Union did not agree to guarantees for the longest possible blocking of Russian sovereign assets due to Hungary's destructive stance.

Initially, it was planned that the U.S. and the EU would each provide $20 billion, with Canada, Japan, and the United Kingdom contributing $10 billion. However, due to U.S. demands for changes to the sanctions regime and Hungary's sabotage, the EU proposed an alternative plan to raise €35 billion for Ukraine—a scenario that requires the approval of a majority and where the opinion of pro-Russian Hungary holds no weight. This financial aid package for Ukraine, which includes a loan of up to €35 billion, was approved by the European Council on October 9 despite Hungarian sabotage.

$50 billion for Ukraine

The G7 countries have agreed to transfer $50 billion to Ukraine from the profits derived from frozen Russian assets. These funds will be directed towards supporting Ukraine's defense, economy, and recovery.

According to Bloomberg, each G7 country will provide loans to Ukraine, with the amounts depending on the size of their economy. This historic agreement is significant for Ukraine as it will help cover its financial needs through 2025 and beyond. Revenues from the frozen assets are expected to range from €3 billion to €5 billion per year, which will greatly assist Ukraine in meeting its needs.

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