Hungary blocks EU fund’s 500 million euros for Ukraine

June 27,2023 1120
Hungary blocks EU fund’s 500 million euros for Ukraine

Hungary has blocked the allocation of another EUR 500 million tranche from the European Peace Facility for EU members. This money was supposed to be sent to the countries as compensation for the weapons delivered to Ukraine. Budapest explains its decision because Kyiv included the Hungarian OTP Bank in the “war sponsors” list.

“We are ready to change our mind if the Ukrainians put an end to the ridiculous, lying state whereby OTP, the biggest Hungarian bank, is on the list of the international sponsors of war,” Péter Szijjártó, Minister of Foreign Affairs of Hungary, said. 

Hungary does not approve the allocation of this tranche for the second time. In May, Budapest also referred to the situation with the bank. Earlier, Siyarto announced that the money would be blocked until Kyiv excludes the financial institution from the “war sponsors” list.

The European Peace Facility is an off-budget mechanism funds from which are directed to increase the capabilities of the European Union in building peace and international security. Currently, the organization, in particular, finances compensation to Ukrainian partners for the weapons delivered to the Armed Forces.

In early May, Ukraine’s National Agency on Corruption Prevention listed the Hungarian OTP Bank as a “war sponsor.” The financial institution’s management continues to work in Russia and recognizes the so-called “LPR” and “DNR,” the NACP says.

Cover: ЕРА