Ukraine Handed $54B Boost by European Allies

The EU has agreed a $54 billion package for Ukraine following fears that the aid would be blocked by Hungarian Prime Minister Viktor Orban.

The Hungarian leader is considered by many to be Russian President Vladimir Putin's ally within the EU and he had questioned Brussels' commitment of funding Kyiv for the next four years.

But on Thursday, the bloc's 27 leaders agreed to the package, which required unanimity in a deal that comes amid a wrangle in the U.S. Congress over providing more assistance for Ukraine against Russia, which began the nearly 2-year-old war on February 24, 2022.

"We have a deal," European Council President Charles Michel posted on X, formerly Twitter," while European Commission President Ursula von der Leyen posted, "a good day for Europe," and that the Council had "delivered on our priorities."

Oleksandr Merezhko, a member of the Ukrainian parliament and chair of the body's foreign affairs committee, told Newsweek that the EU approval was "welcome news" in Kyiv. "Without this financial aid, our government would be unable to pay salaries and pensions. Thanks to this aid we have managed to avert financial catastrophe."

Orban "didn't risk going against the whole EU," Merezhko added. "It would be too risky for his already-tarnished reputation. Had he blocked the aid to Ukraine it would be too obvious that he is a pro-Putin politician, it would be too scandalous."

Still, Merezhko said Kyiv does not expect an end to Budapest's politicking.

"He will definitely continue to blackmail the EU," the lawmaker said of Orban. "This blackmail should be stopped once and for all. I hope that the EU and its member states are fed up with the Orban's selfish and provocative behavior, and will take necessary measures."

Newsweek has reached out to the Hungarian Foreign Ministry for comment.

Polish Prime Minister Donald Tusk had said on Tuesday that the EU would find a way to pass the aid package "with or without" Orban's support. The same day, the Hungarian leader signaled he would drop his opposition to it.

One European diplomatic official, who spoke with Newsweek on the condition of anonymity as they were not authorized to speak publicly, said the "great news" could serve as "an example or encouragement also to Washington, D.C., and the Hill," where a massive Ukraine funding package remains in limbo.

The package sends a "good message to Russia that the EU can sort out their internal differences and is set to continue helping Ukraine." Orban's decision to drop his opposition may have been down to "the recent threats" of EU action against Budapest.

"Perhaps they also got what they needed from Ukraine," the official said, referring to this week's bilateral meeting between Ukrainian and Hungarian foreign ministers.

Reuters reported that the new deal includes a yearly discussion of the package and the option to review it in two years. Orban had been pushing for a yearly review but this would have exposed it to an annual veto threat from Budapest.

Ukrainian President Volodymyr Zelensky said he was "grateful" for the package, which would "strengthen the long-term economic and financial stability" of Ukraine. He also called it "a clear signal that Ukraine will withstand" Russia.

Update 2/1/24, 9 a.m. ET: This article has been updated with a new headline, further information and comment from Oleksandr Merezhko and another European official.