Hungarian FM antagonizes ranging freeze of Russian assets
Date
10/20/2024 5:24:54 AM
(MENAFN) Hungarian Foreign Minister Peter Szijjarto has voiced strong opposition to a proposed three-year extension of the European Union's freeze on Russian assets, arguing that such a move would signal an expectation that the conflict in Ukraine could persist for an additional three years. His remarks come as EU officials in Brussels explore options to amend sanctions rules to facilitate the repayment of a $50 billion loan to Ukraine, which was agreed upon by G7 nations in June.
During a visit to Kyiv in September, European Commission President Ursula von der Leyen announced that the EU would contribute EUR35 billion (approximately $38 billion) as part of the larger G7 loan package to support Ukraine. This commitment is tied to a mechanism established by the U.S. and the EU that allows for the loan to be repaid using interest generated from frozen Russian Central Bank funds.
The EU's sanctions are renewed every six months based on unanimous agreement among member states, meaning that any dissent could disrupt the continuity of the restrictions. This situation has raised concerns in Washington about the reliability of the expected flow of revenue from these frozen assets.
One of the favored proposals among EU members is to extend the six-month sanctions renewal period to a three-year timeframe. If this modification is approved, it could take effect in January 2025. However, Szijjarto made it clear during a hearing of the Foreign Affairs Committee of the European Parliament that Hungary stands firmly against this extension.
The Hungarian government’s stance highlights the complexities and divisions within the EU regarding the response to Russia’s actions in Ukraine, as member states navigate the balance between supporting Ukraine and managing their own national interests. As discussions continue, Hungary's opposition may impact the overall direction of EU sanctions policy and its implications for future relations with Russia.
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