Hungarian PM Orban blocks EU aid for Ukraine after membership talks agreed

Hungary’s Prime Minister Viktor Orban, left, walks as he attends a European Union leaders summit in Brussels, Belgium on Dec. 14, 2023. (Reuters)
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Updated 15 December 2023
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Hungarian PM Orban blocks EU aid for Ukraine after membership talks agreed

  • Hungarian leader refuses to greenlight funding to help prop up Ukraine’s government over the next four years

BRUSSELS: Hungarian Prime Minister Viktor Orban on Friday blocked $55 billion (€50 billion) in EU aid for Ukraine, after leaders side-stepped his opposition to agree to open talks with Kyiv on joining the bloc.

A crunch summit in Brussels broke up after a day of wrangling as the Hungarian authoritarian leader refused to greenlight funding to help prop up Ukraine’s government over the next four years.

Orban called for unblocking all of the still-frozen funds from the European Union for his country, before considering lifting his veto on further aid to Ukraine

“This is a great opportunity for Hungary to make it clear that it should get what it deserves. Not half, then a quarter, but it must get the whole thing,” Orban said in an interview with Hungarian state radio.

“So we want to be treated fairly, and now there is a good chance that we can assert this,” he added.

The wrangling injected a bitter note over the summit, a day after the leaders – minus Hungary – made the historic decision to open talks with Ukraine on it one day joining the bloc.

The second day of the summit was expected to turn to the Israeli-Hamas war in Gaza, and the search for a common EU position on it.

EU countries are divided between those backing calls for a ceasefire in Gaza – supported by the overwhelming majority of the UN General Assembly – and those supporting the stance of Israel and the United States that a ceasefire would bind Israel’s hands as it tries to destroy Hamas.

With the issue of grants and loans to Ukraine blocked by Hungary, the 26 other EU leaders have decided to hold a fresh meeting early next year to try to thrash out an agreement.

The blockage from the Hungarian nationalist – Russia’s best friend in the EU – dealt a blow to Kyiv and its backers only hours after they had celebrated the door opening to accession talks.

Kyiv is urgently trying to change the narrative that backing from its Western allies is waning as doubts swirl over support from the United States.

Orban agreed to step out of the negotiating room to allow the other EU leaders to take the consensus decision without him.

But on social media he railed against the “completely senseless, irrational and wrong decision.”

The other EU leaders hailed the move – which also included agreeing to launch accession talks with Moldova – as a crucial moment.

Ukraine’s President Volodymyr Zelensky, who did not attend the knife-edge summit, called the decision “a victory that motivates, inspires, and strengthens.”

Along with the nod to Ukraine, the EU leaders also agreed to open membership talks with Moldova. Moldovan President Maia Sandu said her country had turned “a new page today.”

The White House – which faces opposition from US Republicans to support for Ukraine – hailed a “historic decision.”

The agreement to open membership negotiations with Kyiv does not mean that Ukraine will be joining the EU any time soon.

Before the talks can be launched, EU states must agree on a negotiating framework – giving Orban ample opportunity to stall the process again.

Most EU leaders wanted this week’s summit to send a sign of solidarity with Ukraine 22 months after Russia launched an all-out invasion.

But any decisions must be unanimous – or at least unopposed – and Orban initially insisted a decision on funding could wait until after next June’s European elections.

Critics have accused the Hungarian leader of holding Kyiv’s survival hostage in a bid to force Brussels to release billions of euros of EU funds frozen over a rule of law dispute.

In what some saw as a last-minute concession, the European Commission, the EU’s executive, agreed on Wednesday to unblock €10 billion of that cash. Another €21 billion remains out of Orban’s grasp.

Beyond Orban, other EU leaders stressed the need for unity and to send a strong signal of support for Ukraine, which has already seen Washington’s support threatened by maneuvers in the US Congress.

The leaders said the bloc had agreed to a 12th round of sanctions on Moscow, targeting Russia’s lucrative diamond exports and aiming to tighten an oil price cap.

But the situation on the battlefield in Ukraine does not look promising for Kyiv after a summer counter-offensive failed. Putin boasted on Thursday that he has 617,000 troops in Ukraine, and that their positions are improving.

Across Brussels, at NATO HQ, alliance secretary-general Jens Stoltenberg warned that the West must continue supporting Ukraine in order to protect the rest of Europe.

“If Putin wins in Ukraine, there is real risk that his aggression will not end there. Our support is not charity – it is an investment in our security,” he said.


India accelerates free trade agreements against backdrop of US tariffs

Updated 21 December 2025
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India accelerates free trade agreements against backdrop of US tariffs

  • India signed a CEPA with Oman on Thursday and a CETA with the UK in July 
  • Delhi is also in advanced talks for trade pacts with the EU, New Zealand, Chile 

NEW DELHI: India has accelerated discussions to finalize free trade agreements with several nations, as New Delhi seeks to offset the impact of steep US import tariffs and widen export destinations amid uncertainties in global trade. 

India signed a Comprehensive Economic Partnership Agreement with Oman on Thursday, which allows India to export most of its goods without paying tariffs, covering 98 percent of the total value of India’s exports to the Gulf nation. 

The deal comes less than five months after a multibillion-dollar trade agreement with the UK, which cut tariffs on goods from cars to alcohol, and as Indian trade negotiators are in advanced talks with New Zealand, the EU and Chile for similar partnerships. 

They are part of India’s “ongoing efforts to expand its trade network and liberalize its trade,” said Anupam Manur, professor of economics at the Takshashila Institution. 

“The renewed efforts to sign bilateral FTAs are partly an after-effect of New Delhi realizing the importance of diversifying trade partners, especially after India’s biggest export market, the US, levied tariff rates of up to 50 percent on India.” 

Indian exporters have been hit hard by the hefty tariffs that went into effect in August. 

Months of negotiations with Washington have not clarified when a trade deal to bring down the tariffs would be signed, while the levies have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing. 

The FTAs with other nations will “help partially in mitigating the effects of US tariffs,” Manur said. 

In particular, Oman can “act as a gateway to other Gulf countries and even parts of Eastern Europe, Central Asia, and Africa,” and the free trade deal will most likely benefit “labor-intensive sectors in India,” he added. 

The chances of concluding a deal with Washington “will prove to be difficult,” said Arun Kumar, a retired economics professor at the Jawaharlal Nehru University.

“With the US, the chances of coming to (an agreement) are a bit difficult, because they want to get our agriculture market open, which we cannot do. They want us to reduce trade with Russia. That’s also difficult for India to do,” he told Arab News.  

US President Donald Trump has threatened sanctions over India’s historic ties with Moscow and its imports of Russian oil, which Washington says help fund Moscow’s ongoing war with Ukraine.

“President Trump is constantly creating new problems, like with H-1B visa and so on now. So some difficulty or the other is expected. That’s why India is trying to build relationships with other nations,” Kumar said, referring to increased vetting and delays under the Trump administration for foreign workers, who include a large number of Indian nationals. 

“Substituting for the US market is going to be tough. So certainly, I think India should do what it can do in terms of promoting trade with other countries.” 

India has free trade agreements with more than 10 countries, including comprehensive economic partnership agreements with South Korea, Japan, and the UAE.

It is in talks with the EU to conclude an FTA, amid new negotiations launched this year for trade agreements, including with New Zealand and Chile.  

India’s approach to trade partnerships has been “totally transformed,” Commerce and Industry Minister Piyush Goyal said in a press briefing following the signing of the CEPA with Oman, which Indian officials aim to enter into force in three months. 

“Now we don’t do FTAs with other developing nations; our focus is on the developed world, with whom we don’t compete,” he said. “We complement and therefore open up huge opportunities for our industry, for our manufactured goods, for our services.”