EU grants Ukraine membership talks but can’t agree on financial aid

BRUSSELS - European Union leaders agreed to open membership talks with Ukraine even as it continues to fight Russia’s invasion.

But they could not agree on a €50 billion (S$73 billion) package of financial aid for Kyiv

due to opposition from Hungary.

At a summit in Brussels, other leaders bypassed objections from Hungarian Prime Minister Viktor Orban by getting him to leave the room while they took the historic step of agreeing to start accession negotiations with a country at war.

But they could not overcome resistance from Mr Orban – who maintains close ties with Russia – to a revamp of the bloc’s budget to channel vital financial support to Ukraine and provide more cash for other EU priorities such as managing migration.

They ended talks on the financial package, which requires unanimity of the 27 EU leaders, in the early hours of Dec 15.

They said they would try again in January, with some voicing optimism a deal could be clinched then.

Officials said leaders of 26 of the EU’s 27 member countries were satisfied with a compromise budget proposal put forward by summit chairman Charles Michel.

“We still have some time, Ukraine is not out of money in the next few weeks,” Dutch Prime Minister Mark Rutte told reporters on leaving the talks. “I am fairly confident we can get a deal early next year; we are thinking of late January.”

Mr Orban has argued that Ukraine should not get such large amounts of money from the EU budget as it is not part of the bloc.

Other leaders have assured Kyiv they could channel aid to Ukraine outside the EU budget if Budapest maintains its blockade.

Russia praised Mr Orban’s stance. Kremlin spokesman Dmitry Peskov said it impressed Moscow.

The news on the financing struck a bittersweet note for Ukraine, coming just

hours after the EU agreed to open membership talks

.

Membership would likely be many years away.

But the decision takes Ukraine a step closer to its long-term strategic goal of anchoring itself in the West and liberating itself from Moscow’s orbit.

Moscow said the decision to open membership talks for Ukraine was a politicised one that could destabilise the EU.

The move comes at a critical time for Ukraine.

Its counter-offensive has failed to make major gains and the Biden administration has so far been unable to get

a US$60 billion (S$80 billion) aid package for Ukraine through the US Congress

.

“This is a victory for Ukraine. A victory for all of Europe. A victory that motivates, inspires, and strengthens,” Ukrainian President Volodymyr Zelensky declared.

“I congratulate every Ukrainian on this day... History is made by those who don’t get tired of fighting for freedom.”

European Commission chief Ursula von der Leyen said it was “a strategic decision and a day that will remain engraved in the history of our Union”.

Mr Orban had very different words to describe the decision.

“Hungary’s stance is clear, Ukraine is not prepared for us to start talks on EU membership,” he said, calling the decision to start talks “irrational” and “inappropriate”.

German Chancellor Olaf Scholz played a key role in getting Mr Orban to leave the room to clear the way for a decision, diplomats and officials said. He said the decision was “a strong sign of support” for Ukraine.

Cautious hopes in Kiev

Ukrainians welcomed the EU’s decision, but they also wondered how they would progress as Ukraine continues to fight a war with Russia.

“This is a very good morale boost now for the Ukrainian people because we really need it with all that’s going on at the front line, with all that’s going on in the US,” said Mr Oleksiy Honcharenko, a member of the Ukrainian Parliament, referring to Ukraine’s stalled counter-offensive and the political infighting in the US Congress that is blocking further military aid to Ukraine.

On Kyiv’s main street Khreshchatyk on a cold snowy morning, Mr Andriy Dyachenko, a 32-year-old programmer, said he was happy with the announcement.

“Ukraine is moving towards Europe and is continuing on its path and developing in this direction. I think this is very good news,” he said.

Ms Lyudmyla, a 58-year-old accountant, said “we really want to be accepted”, but predicted it would not happen “until we finish the war”.

While the war continues, she said, “unfortunately no one wants to take us anywhere”.

The EU leaders also agreed to accession talks with another former Soviet republic, Moldova, and to grant another, Georgia, the status of membership candidate.

“It is clear that these countries belong to the European family,” Mr Scholz said on social media platform X, formerly known as Twitter.

The leaders said they would also start membership talks with Bosnia once it has undertaken certain political reforms.

Orban’s objections

Mr Orban had cited corruption and other issues in arguing Ukraine was not ready for EU talks.

But EU diplomats suspected he was using the issue as a bargaining chip to try to unlock EU funds frozen over concerns about the rule of law in Hungary.

The European Commission on Dec 13 restored Hungary’s access to up to €10.2 billion in refunds for economic projects after finding it had fulfilled conditions on the independence of its judiciary.

Mr Orban stood by his objections to membership talks for Ukraine even after the decision was taken.

Belgian Prime Minister Alexander De Croo, reflecting frustration with Mr Orban, said it was time for the Hungarian to pipe down.

“If you are part of the decision, you agree with the decision, or afterwards you just have to keep your mouth shut,” he said.

In the midst of war, geographically bigger than any EU member and with a population of 44 million, Ukraine presents some unique challenges for admission to the 27-member bloc.

But membership talks will likely take years and will not start immediately.

First, the EU will have to agree to a negotiating framework for the talks – which will require another unanimous decision.

The leaders said they would take this step once Ukraine meets outstanding requirements on democracy and the rule of law. REUTERS