Hungary has set a €30 billion (£25.8 billion) price for dropping its veto over funding for Ukraine’s war effort.
Budapest has threatened to block the €50 billion (£43 billion) support package for Kyiv ahead of a European summit in Brussels later this week.
Hungary says it is owed €30 billion withheld by the bloc in a row over the erosion of democracy in the central European state.
But Budapest hinted on Wednesday it would “consider contributing” to a new round of Ukraine funding if Brussels were to unlock tens of billions for Hungary that were previously held back.
Brussels is under pressure to deliver support to Kyiv after Volodymyr Zelensky failed to convince Republican politicians in the US to end their own opposition to funding.
The European Commission is expected to release €10 billion (£8.6 billion) of Hungary’s blocked funds at the summit. Budapest has repeatedly signalled it is willing to “make financial deals on financial matters”, but remains opposed to offering Ukraine official talks to join the bloc.
Hungary’s threat of a veto over both financial and political support risks dealing a double-blow at a time Ukrainian forces are under significant pressure on the front lines in the war against Russia.
Figures released last week by the Kiel Institute for the World Economy, a German think tank tracking aid to Ukraine, said commitments had reached a new low between August and October.
Global promises of just €2.11 billion (£1.8 billion) of support were offered to Kyiv, a 90 per cent decrease compared to the same period last year.
It is not clear if the EU’s offer to unfreeze €10 billion for Budapest will be enough to ease through the financial package for Ukraine.