Ukraine-Russia: EU leaders agree €50bn aid package for Ukraine after Hungary backs down on veto

Viktor Orban was the only leader to veto a proposal in December

The European Union has agreed a €50 billion [£43bn] support package for Ukraine after a deal in which Hungarian prime minister Viktor Orbán backed down to drop his veto.

Hungary vetoed a previous proposed aid package for Kyiv in December and was expected to do so again on Thursday – while US military aid for Ukraine is also being held up by Congress, leaving the war-hit country in financial difficulties.

The money will be used for immediate needs such as pensions and salaries, as well as allowing Ukraine to plan its long-term budget. The first tranche of funds, which is believed to come in the form of both loans and grants, will be handed to Kyiv next month.

Ukrainian President Volodymyr Zelensky welcomed the announcement.

The agreement came after a flurry of last-minute diplomatic efforts in Brussels.

“All 27 leaders agreed on an additional €50bn support package for Ukraine within the EU budget,” the president of the European Council, Charles Michel, said on social media just an hour into Thursday’s meeting. He added: “This locks in steadfast, long-term, predictable funding. EU is taking leadership and responsibility in support for Ukraine; we know what is at stake.”

Ursula von der Leyen, the president of the European Commission, added: "A good day for Europe."

Mr Orban had previously called for an annual review of funding for Ukraine, something that was not part of the EU deal. Instead, leaders agreed to a regular review of the way the money was being spent to guard against corruption. It was also agreed no single country would be able to veto the continued flow of aid following each review.

Ukrainian president Volodymyr Zelensky said: “Grateful to Charles Michel and EU leaders for establishing the €50bn Ukraine Facility for 2024-27.

“It is very important that the decision was made by all 27 leaders, which once again proves strong EU unity. Continued EU financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than military assistance and sanctions pressure on Russia.”

Mr Orban, who leads a right-wing government, is regarded as the closest ally within the EU to Russian president Vladimir Putin. On Tuesday, he made a defiant statement on Twitter.

“We made a compromise proposal – in return, we were blackmailed by Brussels,” he said in relation to the publication of a report in the Financial Times – refuted by the EU – that claimed the European Union would sabotage Hungary's economy if Budapest continued to block fresh aid to Ukraine.

“The cat is out of the bag. Forget about the rule of law, Hungary is blackmailed for having its own opinion on migration, the war in Ukraine and gender propaganda. We will defend our interests. Hungary cannot be blackmailed.”

However, Mr Orban said he would soften his stance if the annual review was in place. It is not known how the final deal was agreed.

"Hungary is ready to participate in the solution of the 27 [EU member nations] if you guarantee that each year we will decide whether or not to send this money,” he said earlier this week. “And this annual decision must have the same legal basis as today – it must be unanimous.”