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EU countries are rushing to make a decision to indefinitely freeze up to €210 billion ($244.38 billion) in Russian sovereign assets, aiming to sidestep Hungarian Prime Minister Viktor Orbán even before Europe’s leaders meet for a summit next week.
The push to pass the legislation quickly—using emergency powers that override national vetoes on sanctions—is intended to strengthen the EU’s leverage in US-led peace talks over the war in Ukraine, officials familiar with the plans said.
Diplomats handling the legislation believe acting swiftly could separate the contentious asset freeze from debates on funding Kyiv using the frozen Russian assets. That latter question, which involves raising loans for Ukraine, will be discussed by EU leaders next week.
The plan to vote within the coming week, effectively bypassing the principle of unanimity on sanctions decisions, is expected to anger Hungary and other opposing countries. Previous instances of the EU outvoting members on major issues—such as Poland and Hungary over migration policy—have left long-lasting tensions between capitals.
Last week, the European Commission proposed using €210 billion of Russia’s assets frozen under EU sanctions to fund a loan to Kyiv. The initial plan envisions €90 billion ( approximately $104.71 billion) being disbursed over the next two years. For this to work, the assets need to be immobilised indefinitely, instead of the current six-month periods that require unanimous approval for renewal.
Hungary, Europe’s most pro-Russian member state, has opposed further aid to Kyiv and routinely threatens to veto sanctions rollovers. EU officials worry Orbán could follow through if, for instance, the Trump administration decided to unilaterally lift US sanctions on Russia.
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View AllZoltán Kovács, Hungary’s government spokesperson, said this week that the commission’s loan proposal “crosses every red line.”
To bypass potential vetoes, the European Commission has proposed invoking emergency powers reserved for economic crises under Article 122 of the EU treaties. This allows sanctions to be imposed with just a majority vote rather than requiring unanimity.
Locking in the sanctions would also signal resistance to Washington. An initial Ukraine peace plan partly drafted by American officials had envisioned most of the frozen assets being channelled into two US-led investment funds. US officials have also tried to discourage EU capitals from using the assets before a peace plan is agreed.
Belgium, home to central securities depository Euroclear—which holds €185 billion ($215.19 billion) of the Russian assets—has expressed concerns over legal and financial risks. It fears being liable for claims from Russia should sanctions be lifted unexpectedly.
Belgium has demanded guarantees that other member states would share liability for potential legal claims. European Commission President Ursula von der Leyen said the commission has addressed “almost all” of Belgium’s demands regarding the reparations loan.
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