Hungary blocks EU money for Ukraine. Here's what you need to know.

That of the European Union Leaders are meeting in Brussels on Thursday to try to strike a deal with Prime Minister Viktor Orban of Hungary, who is blocking a multibillion-dollar fund that would secure Ukraine's financing for years to come.

Talks have stalled and the mood towards Orban is negative, with European leaders, unusually united against one of their colleagues, fed up with his position on Ukraine and his anti-EU posturing.

What is at stake?

A 50 billion euro ($54 billion) fund should support Ukraine until the end of 2027.

Ukraine is facing one of its most difficult moments since Russia's all-out invasion nearly two years ago, which saw a hold up of U.S. aid and virtually no progress on the battlefield.

Kiev urgently needs fresh money to keep basic services running. The EU aid, which will be provided in the form of loans and grants over the next four years, would cover both immediate needs and allow Ukraine to plan its long-term budget.

This money is part of aid funds, still under negotiation, to supplement the EU budget and pay for such things emergency measures in case of natural disasters. If no agreement is reached on financing Ukraine, other parts of the budget will also be held up.

There are broader issues at stake. If EU leaders fail to agree on long-term support for Ukraine, it could undermine the bloc's credibility. And a final rift over Ukraine could be difficult to repair, deepening Hungary's isolation.

Why is Hungary blocking the deal?

Mr Orban has weakened or blocked most EU decisions related to Ukraine, including sanctions against Russia, which require the unanimous support of all 27 EU countries.

President Vladimir V. Putin's closest — and perhaps now only — ally in the EU, Mr. Orban, says he believes Russia poses no threat to Europe.

Critics say Orbán is simply trying to expand his power. The aim, they say, is to use the Hungarian veto as leverage to release billions of euros in stalled EU funding. about Hungarian violations of EU rules.

Why are relations between the EU and Hungary so bad?

The EU and Hungary have long been at odds over policies on the rule of law, corruption and minority rights, but their relationship has reached a low point since the outbreak of war in Ukraine two years ago.

The European Commission, which enforces EU rules, believes that Mr Orban's domestic policies have eroded democratic protections and that he has diverted EU funds to himself and his allies. The country has punished Hungary by freezing money that the country would normally receive from the EU – and desperately needs

Mr Orbán and his officials reject the criticism, saying the EU is trying to impose liberal Western values ​​on Hungary that conflict with its view of his country's conservative Christian identity.

Can the EU change Mr Orban's mind?

Orbán's EU partners have committed to a robust annual review of how money given to Ukraine is spent, but they say they will not grant Hungary its demand for an annual vote.

If it is access to frozen EU funding that Mr Orban is really after, that seems unlikely.

At the end of last year, the Commission concluded that Hungary had implemented judicial reforms and released 10 billion euros. But it said it would continue to withhold the remainder, 20 billion euros, as other issues remained unresolved.

Although EU officials said the timing of the decision was coincidental, it came just before EU leaders officially began talks that could lead to Ukraine joining the bloc. Mr Orban had said he would veto such a decision, but this time he left the room when the decision was made and actually abstained.

A repeat of this scenario on Thursday is highly unlikely. The committee has made clear that it believes that Hungary has not made any new progress that would justify releasing more frozen funds.

What's the best scenario?

Mr Orbán and EU leaders could still find room for compromise when it comes to the details of how the Ukraine fund will be managed. For example, Hungary could receive a financial incentive in the form of a waiver of the country's small contributions to the EU budget.

This would allow the EU to offer Ukraine predictable long-term financing. The rift with Mr Orban would be put aside. And leaders could focus on winning by getting all EU member states behind Ukraine at a crucial moment.

What if Mr. Orban doesn't come on board?

If the talks fail and no Ukraine fund is announced, EU leaders will be forced to go home and figure out what to try next.

One option is to launch a special fund for Ukraine, approved by 26 member states, leaving out Hungary.

That is cumbersome and risky, requiring the approval of each government, and in some cases parliamentary votes. And it would prolong uncertainty over Ukraine's financing and bring divisions to the fore, just what Putin wants.

A nuclear option would be for the 26 EU countries to launch a fund for Ukraine without Hungary, by legally depriving the country of its voting rights. This is a lengthy procedure that has never been used and would drastically escalate the rift between Mr Orban and the rest of the bloc.

This option seems unlikely as most EU countries are against it.