Hungary has taken a stance against the European Union's plan to provide a 90 billion euro loan to Ukraine, as reported by the Financial Times. The Hungarian ambassador to the EU announced on Friday that Budapest opposes the EU taking on debt commitments that would be backed by the bloc's overall budget in order to finance the loan to Ukraine. Such a decision requires unanimous approval from all 27 EU member states, complicating the approval process significantly.

In December, EU leaders had agreed on this financial package to assist Ukraine, which is facing a budget deficit exacerbated by the ongoing conflict. However, Hungary, along with Slovakia and the Czech Republic, has expressed willingness to support Ukraine only under the condition of being exempted from interest and repayment obligations. This presents a significant hurdle for the approximately 90 billion euro package that was meant to bolster Ukraine's economic stability amidst the ongoing crisis.

Furthermore, Hungary's veto could jeopardize not only the EU loan but also the International Monetary Fund's (IMF) program intended to allocate an additional 8 billion euros to Ukraine. The interconnected nature of these financial supports highlights the fragile state of international assistance to Ukraine, as individual member states can leverage their positions to shape or block necessary funding, ultimately impacting Ukraine's recovery and stabilization efforts.