Hungary to withhold final deal on $50 billion G7 loan to Ukraine, delaying decision on renewing EU sanctions against Russia until after the presidential elections in the USA, Hungarian Finance Minister Mihai Varga announced, quoted by Reuters.
Washington is pushing for the European Union to extend the renewal of sanctions against Russia from six months to three years so that the US can provide about $20 billion in G7 loans to match the EU's contribution, EU officials said. The remaining $10 billion will be provided by Canada, Great Britain and Japan.
The loan, agreed in principle by G7 leaders in June, will be secured by about $300 billion worth of Russian central bank assets frozen in the West after Russia invaded Ukraine in 2022. Washington wants certainty, that these Russian assets will remain frozen long-term, not be questioned every six months.
"We believe that the issue of extending sanctions against Russia should be resolved after the US elections. We have to see how the next US administration will act on this matter," Varga said at a press conference.
The matter will be discussed further at the G7 finance ministers meeting in Washington in late October, but Hungary's decision means that the final contributions of each G7 country will not be determined until after the elections on 5 November of the USA.