EU Floats Path to Overcome Hungary’s Veto on Ukrainian Funding

(Bloomberg) -- European Union officials are considering ways to circumvent Hungary’s veto of funding for Ukraine amid frustration over Budapest’s blocking of more than €6 billion ($6.6 billion) in aid.

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The EU’s diplomatic arm, the External Action Service, is weighing allowing member states to make voluntary contributions to the European Peace Facility, according to people familiar with the discussions who spoke on condition of anonymity. That would allow future funds to flow based on the consent of contributors rather than by unanimous support.

Hungary has wielded its vote to halt disbursement for more than a year, prompting member states to seek other avenues. It’s unclear how much support the plan will draw, with many of the bloc’s core decisions subject to unanimity. EU ambassadors will meet Tuesday to flesh out details, the people said.

Prime Minister Viktor Orban has become increasingly vocal in opposing EU efforts to assist Ukraine’ war effort 2 1/2 years after Russian forces invaded. The Hungarian leader, who has maintained ties with the Kremlin, drew a sharp rebuke from EU leaders with a diplomatic foray that took him to Moscow for talks with President Vladimir Putin in July.

EU member states made clear that they didn’t support Orban’s freelancing. The European Commission, the bloc’s executive arm, has said it won’t send top officials to a number of meetings in Hungary even as the country holds the EU’s six-month rotating presidency.

Hungary’s intransigence over funding for Ukraine has already prompted discussions among diplomats on how to shield the aid from a veto. Seven packages totaling €3.5 billion have been approved by the EPF since Russia’s full-scale invasion, as well as €2 billion to supply ammunition.

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