Hungary has previously used its EU veto to block the funding to the Ukraine on the basis that a major Hungarian bank – OTP – is on a Ukrainian blacklist for transacting business in Russia and thereby ‘sponsoring Putin’s war.’ On July 21, Budapest announced it would oppose the EU’s plan for EUR 20 billion military support to Ukraine unless Ukraine strikes OTP Bank from the list. On Sept. 29, NACP temporarily suspended this status. OTP is not the only bank in such a position – Austria’s Raiffeisen Bank International, one of Europe’s most exposed to Russia, earned over half of its profit last year from Russia – although Vienna has not been so forthright in proposing a ceasefire in the Ukraine as has Budapest. OTP has now been de-listed from the „doing business in Russia blacklist,” but is seeking legal assurances that this is permanent.
EU top diplomat Josep Borrell confirmed that there is still no agreement on releasing a €500 million tranche to help arm Ukraine. In May 2023, the Hungarian Foreign Minister said they would block the next tranches of EU military support for Ukraine and any new EU sanctions package against Russia until the OTP Bank was removed from Ukraine’s list of war sponsors. The European Union expects Hungary to unblock the tranche amid ongoing negotiations between Hungary and Ukraine.
