Hungary blocking €2bn of Poland’s EU funds for Ukraine military aid

Hungary is blocking around €2 billion (8.5 billion zloty) of EU funds earmarked for Poland to compensate for military aid Warsaw has provided to Ukraine.

“The [Polish] government has been repeatedly communicating to Hungary at all possible levels that we are dissatisfied with the fact that Hungary has, for a year now, been blocking refunds for the military equipment we delivered to Ukraine,” said foreign minister Radosław Sikorski on Tuesday.

While Sikorski mentioned a figure of 2 billion zloty, Onet, a leading Polish news website, reported today that the amount being blocked by Budapest is actually the far higher figure of €2 billion. It cited unnamed Polish officials expressing anger and frustration at Hungary’s actions.

The money is supposed to come from the EU’s European Peace Facility, a financing mechanism established in 2021 for the purchase of ammunition and military equipment and that has since 2022 been used to support Ukraine’s defence against Russian aggression.

The funds would compensate Poland for half of the roughly €4 billion worth of military aid it has provided to Ukraine, reports Defence24, an industry news service.

Hungary’s decision to block the disbursement of funds is hindering both further Polish aid to Ukraine and Poland’s plans to modernise its armed forces and fill gaps left by the equipment it has donated to Ukraine, adds Defence24.

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Under the leadership of Viktor Orbán, Hungary has been the EU member state most friendly towards Russia and most sceptical of supporting Ukraine during the ongoing war. That has often led to conflict with Poland, which has been among Kyiv’s staunchest allies.

Sikorski said that Hungary is behaving in an “unfriendly and hostile” manner towards Poland and “abusing our trust”.

Jarosław Kaczyński, leader of Law and Justice (PiS), Poland’s main opposition party, also expressed concern at reports of Hungary’s blocking of funds for Poland. PiS was once a close ally of Orbán’s Fidesz party, but those ties have been strained by opposing approaches to Russia’s war in Ukraine.

Asked about the issue today, Kaczyński said that, “if this is true, then I will comment on it very negatively. I mean, very negatively towards Mr Orban”.

Daniel Tilles is editor-in-chief of Notes from Poland. He has written on Polish affairs for a wide range of publications, including Foreign Policy, POLITICO Europe, EUobserver and Dziennik Gazeta Prawna.