FT: EU rushes to outpace Hungary on Russian assets ahead of summit

EU countries are preparing to fast-track a plan to indefinitely freeze up to €210 billion in Russian sovereign assets, seeking to sidestep opposition from Hungary’s Prime Minister Viktor Orbán ahead of next week’s EU leaders’ summit.

Officials familiar with the plan say the accelerated legislation, which invokes emergency powers to override national vetoes on sanctions extensions, is intended to strengthen Brussels’ leverage in US-led negotiations over the war in Ukraine, Financial Times (FT) reports.

Diplomats involved in the process see a strategic benefit in separating the contentious issue of asset immobilisation from the broader debate on providing Kyiv with loans backed by the frozen Russian funds. The financing question is expected to remain on the agenda for EU leaders next week.

Voting in the coming days, bypassing the usual unanimity requirement for sanctions decisions, could provoke strong reactions from Hungary and other member states opposing the measure.

Last week, the European Commission proposed using €210 billion of Russia’s foreign assets already frozen under EU sanctions to fund a loan to Kyiv, initially set at €90 billion to be disbursed over the next two years.

For the scheme to function effectively, the assets must be frozen indefinitely, rather than in six-month increments that require unanimous renewal by all EU27 countries.

Hungary, widely regarded as the EU’s most pro-Russian member, opposes additional aid to Kyiv and has repeatedly threatened to veto any extension of sanctions. EU officials worry Orbán could act on this threat if the Trump administration decides to lift US sanctions on Russia.

To mitigate this risk, the Commission has proposed invoking emergency powers designed for economic crises to impose indefinite sanctions on the assets.

Under Article 122 of the EU treaties, this approach requires only a majority vote among member states, allowing Brussels to bypass potential vetoes.

By Jeyhun Aghazada