On October 9, 2024, Hungary vetoed a European Union proposal to extend the freeze on Russian assets from the current six-month intervals to a three-year period. This decision raises doubts about the EU's ability to provide Ukraine with a promised €35 billion loan, as announced by European Commission President Ursula von der Leyen.
The planned loan was to be secured through the interest accrued from frozen Russian assets held in Western financial institutions. However, Hungary's stance poses a risk of these assets being unfrozen due to any member state's position, jeopardizing the financial assistance to Ukraine.
Hungarian Finance Minister Mihály Varga stated that the country wishes to wait for the results of the upcoming U.S. presidential elections before making any decisions regarding the continuation of Russian sanctions. He emphasized that the future U.S. administration's approach could significantly influence this issue, with candidates presenting two contrasting strategies: one advocating for peace and the other continuing the war.
Other EU member states support the extension of the asset freeze and the provision of financial aid to Ukraine. Political advisor to Hungary's Prime Minister Viktor Orbán, Balázs Orbán, criticized Ukrainian President Volodymyr Zelensky for his decision to confront Russia in February 2022, drawing a parallel to Hungary's 1956 uprising against Soviet rule.
Viktor Orbán has previously stated that Hungary will not engage in conflict with Russia and has resisted calls from EU leadership to supply arms to Ukraine, asserting that Budapest remains committed to peace.