Ukraine

E.U. throws Ukraine $54 billion lifeline after Hungary drops opposition

BRUSSELS — European Union leaders agreed Thursday to $54 billion in aid for Ukraine, overcoming opposition from Hungary to secure critical funding as battlefield progress stalls and support from the United States looks uncertain.

In emergency meetings in Brussels, Hungarian Prime Minister Viktor Orban, who has spent months railing against the aid, finally agreed to sign on.

The agreement is a win for E.U. leaders who have increasingly struggled to work with Orban on key issues, particularly Russia’s war in Ukraine, and it is good news for Ukraine, which is running desperately short of both ammunition and cash.

The macro-financial assistance is a mix of grants and loans to be dispensed over four years. The first tranche could arrive in March, Ukraine’s Ministry of Economy said.

With Hungary blocking Ukraine aid, E.U. desperate for workarounds

“This locks in steadfast, long-term, predictable funding for Ukraine,” European Council President Charles Michel said in announcing the deal.

Ukrainian President Volodymyr Zelensky welcomed the news, writing that “continued E.U. financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than military assistance and sanctions pressure on Russia.”

The E.U. is also trying to surge desperately needed ammunition to Ukraine, but will not meet the goal it set last year of sending a million rounds to Ukraine by March.

The weeks of fraught negotiations have spotlighted how a single strongman can disrupt the E.U., even on issues, such as Russian aggression, that many see as “existential” for the union. And it has hinted at how precarious and unpredictable long-term support for Ukraine could be.

In the United States, a $60 billion aid package for Ukraine is being blocked by Republicans in Congress as they seek concessions on border security, something German Chancellor Olaf Scholz hoped would be resolved soon as well.

“This by the way is also a good signal towards the U.S. The American president is a good friend and ally who is working hard to win support for his demands from the Congress,” he said in Brussels after the deal was announced.

In Europe, Orban used his veto to block the funding at a summit in December, forcing heads and state and government to fly back for a second gathering. Top E.U. officials and various country leaders have been working furiously for weeks to secure his support.

As if to underscore the sense of uncertainty and chaos, the meeting took place amid a massive protest by farmers who arrived in tractors, blocked traffic and set fires in the heart of the city. They called on leaders to focus more on cost-of-living issues, including high taxes and what they see as excessive regulation from E.U. headquarters in Brussels.

A surge in populist sentiment on the continent could help the likes of Orban and challenge Ukraine at a dangerous moment in the war. Ukraine’s strategy for 2024 is still uncertain, and behind the scenes close allies are concerned about their prospects on the battlefield and political disruption in Kyiv.

On Thursday, however, Orban did not get his way.

The Hungarian leader had pushed hard for the possibility of a yearly veto over the money for Ukraine. Instead, leaders agreed to reviews of how it is being spent — with no veto.

Bad blood between Brussels and Budapest is not new. For years now, Orban has clashed with E.U. officials and leaders, using his acrimony — and veto — to extract concessions while playing to populist sentiment at home.

But in recent months, he seems to have crossed a new line. Fellow leaders see his latest antics as a genuine threat to European security — and they are increasingly willing to work around him.

“There is no problem with so-called Ukraine fatigue,” Polish Prime Minister Donald Tusk said as he entered the summit Thursday. “We have Orban fatigue right now in Brussels.”

“This is for Mister Orban to decide,” he continued, “If Hungary is part of our community, or not.”

In the lead-up to the summit, top E.U. officials and leaders sought to pressure Orban to come back to the table and made plans to move forward by, for instance, cutting a deal among the 26 other member states without him.

A paper written by the Council of the E.U. and leaked to the Financial Times ahead of the summit explored ways that E.U. countries could deliberately rattle Hungary’s economy to get Orban on board.

The leak was widely seen as an E.U. effort to bring Hungary back in line.

Some think it may have worked. “The swift agreement shows that Viktor Orban backs down when economic pressure is increased,” said Rasmus Andresen, spokesman for the German Greens in the European Parliament, in a statement.

“He has lost on all fronts,” he continued. “Today should mark the end of his power games.”