European Union member states are actively exploring alternative options to bypass Hungary's blockade on around $54 billion in emergency funds for Ukraine, as the country faces a perilous second winter of full-scale conflict with Russia. The move comes after Hungarian Prime Minister Viktor Orbán followed through on his threat to veto the release of funds for Kyiv during last week's summit in Brussels.

European Commission President Ursula von der Leyen stated that work is in progress to identify potential alternatives to the stalled funding plan. She emphasized the importance of securing an agreement among all 27 member states and expressed confidence that a way forward would be found during an emergency summit in late January or early February, as envisioned by Charles Michel, the president of the European Council.

The proposed $54 billion in support for Ukraine was part of a revised EU common budget for the period up to 2027. Amendments to the budget require unanimity among member states, granting each country the power to veto. This setback for Kyiv comes as President Joe Biden's call for $60 billion in military aid for Ukraine remains pending in Congress.

Despite the release of €10 billion ($11 billion) in previously frozen funds for Hungary, Orbán remained steadfast in his opposition. Balázs Orbán, the Hungarian prime minister's political director, argued that the released funds fell short, stating, "We don't get our money. Why would we have any further [financial] facility?" He accused fellow EU states of blackmailing Hungary by withholding funds and remarked that the Commission still holds around $21 billion for Hungary.

Nonetheless, the remaining 26 member states have reached a consensus on a proposed plan for $54 billion in grants and loans for Ukraine over the next four years, according to the Financial Times. To circumvent Hungary's veto, EU nations may establish a separate fund outside of the common EU budget that does not require Budapest's approval.

There are even indications that Hungary may eventually contribute to this fund. Balázs Orbán suggested that Hungary is not opposed to financially supporting Ukraine outside of the budget, albeit for a shorter period and with certain recommendations.

European leaders maintain their optimism despite this recent setback. German Chancellor Olaf Scholz expressed confidence that an agreement would be reached in January, urging fellow leaders not to abandon the objective of funding Ukraine through the EU's common budget. French President Emmanuel Macron stressed that the other 26 states will not be deterred by Hungary's objections, urging Orbán to "behave like a European" and not hold the political process hostage.

In Ukraine, officials welcome the Commission's decision to initiate membership talks with Kyiv, but emphasize the need for expedited aid. President Volodymyr Zelensky asserted last week that "You can't win without help." Oleksandr Merezhko, a member of the Ukrainian parliament and chair of the foreign affairs committee, expressed confidence that EU partners truly understand Ukraine's difficult situation and the urgency of financial assistance.

"It's frustrating, of course, that Orbán is acting as a hostage taker to squeeze money out of the EU," Merezhko added. "The EU shouldn't encourage such political behavior. It shouldn't yield to Orbán's blackmail."

As the EU leaders continue to work towards a resolution, time remains critical for Ukraine, with only a few months, possibly even two, left to secure the necessary financial support. The stakes are high, and Ukraine hopes its partners will find a way to provide the aid it urgently requires.