EU Moves to Secure Hungarian Approval for New Russia Sanctions
The European Union is set to unlock approximately €550 million in funds for Hungary, a move aimed at securing Budapest's crucial approval for the bloc's 19th package of sanctions against Russia. This development comes after months of negotiations, as Brussels seeks to overcome Prime Minister Viktor Orbán's veto on additional restrictive measures against Moscow.
Context of the Funds and Previous Disputes
The funds in question are part of a larger €605 million request made by Hungary in May 2025, submitted as part of a 'midterm' review concerning how member states utilize their share of the EU common budget. These funds originate from the Cohesion Fund, which is designed to reduce economic disparities among member states and support projects in infrastructure, education, and social sectors.
The relationship between the EU and Hungary regarding financial disbursements has been contentious. In 2022, Brussels froze around €22 billion in EU funds allocated to Hungary due to significant concerns over judicial independence, asylum rights, discrimination against LGBT+ individuals, and academic freedom. However, the European Commission has previously released portions of these frozen funds to secure Hungary's cooperation on key EU policies. Notably, €10 billion was unfrozen in 2023 to gain Budapest's approval for assistance to Ukraine. Additionally, Hungary received another €157 million earlier this year by utilizing a legal loophole that permits the redirection of frozen funds to other programs.
Details of the 19th Sanctions Package
The European Commission officially announced its 19th sanctions package against Russia on September 19, 2025. This comprehensive package is designed to target critical sectors of the Russian economy, specifically focusing on:
- Cryptocurrencies
- Banks
- The energy sector
Key proposals within this package include a complete ban on Russian liquefied natural gas (LNG) imports to EU markets by January 1, 2027. Furthermore, the sanctions aim to significantly expand the list of Russian 'shadow fleet' vessels and impose penalties on oil refineries, oil traders, and petrochemical companies operating in third countries, particularly China.
Hungary's Persistent Opposition
Hungary, often supported by Slovakia, has consistently threatened to veto new sanctions against Russia, citing its ongoing dependence on affordable Russian energy imports. The EU's decision-making process for sanctions requires unanimous approval from all 27 member states, granting individual countries like Hungary significant leverage. Prime Minister Orbán, who is slated to face parliamentary elections next year, has repeatedly emphasized his country's need for Russian energy, contributing to the delays in adopting previous sanctions against Moscow.
7 Comments
Fuerza
I understand the pragmatic need to ensure EU unity against Russia, but this tactic of financial incentives feels like a short-term fix that fails to address the underlying issues with Hungary's governance and its relationship with the Union.
Manolo Noriega
Good. We can't let one country hold up vital sanctions. This helps Ukraine.
Fuerza
It's a difficult situation where the EU needs unanimity for sanctions, but constantly caving to Orbán's demands weakens the bloc's credibility and emboldens other dissenting members.
Ongania
Absolutely shameful. Hungary gets paid off while undermining EU values.
Fuerza
On one hand, securing the 19th sanctions package is a strategic win against Russia, but on the other, this continuous cycle of unlocking funds for Hungary despite rule of law issues sends a mixed message about EU priorities.
Katchuka
It's frustrating, but if this unlocks critical sanctions, it's a necessary evil.
Noir Black
While getting sanctions passed is crucial for deterring Russia, paying off Hungary undermines the very principles the EU claims to uphold regarding rule of law and democratic values.