The European Commission is exploring a legal workaround to bypass Hungary’s veto on a €140 billion plan to seize Russian assets for Ukraine.
Hungary Blocks EU Plan to Seize Russian Assets
The Hungarian Prime Minister Viktor Orbán is obstructing the EU’s proposal to confiscate 140 billion euros in Russian assets and transfer them to Ukraine. The plan requires unanimous approval from all 27 member states, but the European Commission claims to have found a legal loophole to exclude Hungary from the decision-making process, according to Politico.
The Commission is working on a system to ensure that the proposed “reparations loan” for Kyiv can be approved by a qualified majority rather than unanimity.
Legal Basis for the Commission’s Move
According to Politico, the European Commission intends to justify its actions based on a statement by the European Council, which all EU leaders, including Orbán, endorsed on December 19. The statement affirmed that Russia’s assets should remain frozen until Moscow ends its aggression against Ukraine and compensates for the war’s damages. The Commission argues this provides sufficient legal grounds to shift from unanimity to a qualified majority vote.
Reactions from EU Member States
Politico reports that unanimity is threatened not only by Hungary but also by Slovakia and Belgium. The Belgian government fears that seizing the funds could expose the country and Euroclear, the international financial institution holding the frozen Russian assets, to retaliation from Moscow. Supporters of the Commission’s plan include Germany, Spain, Poland, and the Baltic states. France and Italy are approaching the issue with caution.
EU leaders will discuss the loan at a meeting in Copenhagen next week, though no formal decisions will be made. Final decisions are expected at a summit at the end of October.
