Hungarian Prime Minister Viktor Orbán isn't mincing words about the European Union's new €90 billion ($105.41 billion) loan to Ukraine. He's calling it a dangerous precedent that could actually extend the Russia-Ukraine war rather than end it.
Here's his logic: If repayment depends on Ukraine achieving military victory, then creditors have a financial stake in the war continuing until that happens. It's a perverse incentive structure, and Orbán made his position clear in a post on X Friday: "We are not looking for a fast track into war, but for an exit towards peace."
How the Money Actually Works
The financing mechanism got a significant overhaul. The EU originally wanted to use frozen Russian assets directly, but that plan fell through. Instead, the bloc will raise the money through joint debt on capital markets, backed by the EU budget.
German Chancellor Friedrich Merz, who had pushed for a reparations-style loan secured by those frozen Russian assets, put a different spin on it: "This sends a clear signal from Europe to Putin: This war will not be worth it." He noted that Russian assets will stay frozen until Russia compensates Ukraine.
EU Council President Antonio Costa added that the package represents a crucial step toward achieving a just and lasting peace in Ukraine.
Not Everyone's On Board
Three EU countries refused to support the loan: Hungary, Slovakia, and the Czech Republic.
Meanwhile, Kirill Dmitriev, CEO of the Russian Direct Investment Fund and a close Putin ally, celebrated the scrapping of the frozen-assets plan as "a major win for law and common sense."
