EU Freezes Russian Assets to Bypass Hungary, Slovakia Block on Ukraine Aid

by Ibrahim Khalil - World Editor
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The European Union on Friday indefinitely froze Russia’s assets in Europe to ensure that Hungary and Slovakia, both with Moscow-kind governments, cannot prevent the billions of euros from being used to support Ukraine.

Using a special procedure meant for economic emergencies, the EU blocked the assets until Russia gives up its war on Ukraine and compensates its neighbor for the heavy damage that it has inflicted for almost four years.

European council President Antonio Costa said the EU delivered on a commitment to keep Russian assets immobilised until Russia ends the war (Marco Longari/AP)

EU Council President Antonio Costa said European leaders had committed in October “to keep Russian assets immobilised until Russia ends its war of aggression against Ukraine and compensates for the damage caused”.

He said: “Today we delivered on that commitment.”

It is a key step that will allow EU leaders at a summit next week to work out how to use the tens of billions of euros in Russian Central Bank assets to underwrite a huge loan to help Ukraine meet its financial and military needs over the next two years.

“Next step: securing Ukraine’s financial needs for 2026/27,” added Mr Costa,who will chair the summit on December 18.The move also prevents the assets, estimated to total around 210 billion euros (£184 billion), from being used in any negotiations to end the war without European approval.

A 28-point plan drafted by US and Russian envoys stipulated that the EU would release the frozen assets for use by Ukraine, Russia and the United States.

That plan, which surfaced last month, was rejected by Ukraine and its backers in Europe.

French Foreign Minister Jean-Noel Barrot wrote on X that the EU decision means that “no one will decide in place of the Europeans the use of these funds.”

Hungarian Prime Minister Viktor Orban – Russian President vladimir Putin’s closest ally in Europe – accused the European commission, which prepared the decision, “of systematically raping European law”.

The vast majority of the funds – around 193 billion euros (£169 billion) at the end of September – are held in Euroclear, a Belgian financial clearing house.

The rule of law in the European Union comes to an end, and Europe’s leaders are placing themselves above the rules

EU Freezes Russian Assets Indefinitely to Fund Ukraine, Circumventing Hungary and Slovakia’s Opposition

Brussels, Belgium – The European Union has taken a decisive step to bolster support for Ukraine by indefinitely freezing approximately €210 billion (£184 billion) in Russian assets held within its borders. This move, enacted on Friday, is designed to ensure these funds can be utilized to aid Ukraine’s financial and military needs, even in the face of opposition from member states like Hungary and Slovakia, who maintain closer ties with Moscow.

The decision leverages a special emergency procedure within EU regulations, circumventing the typical requirement for unanimous approval on sanctions renewals. This mechanism allows the EU to protect its economic interests during critical situations, effectively blocking the assets until Russia terminates its ongoing war in Ukraine and provides reparations for the extensive damage inflicted over the past four years.

“Today we delivered on that commitment,” stated European Council President antonio Costa, referencing a pledge made by EU leaders in October to immobilize Russian assets until a resolution to the conflict is reached and compensation is provided. Costa emphasized that this action paves the way for a summit next week, scheduled for December 18th, where leaders will finalize plans to utilize the frozen funds to secure a substantial loan for Ukraine, covering its financial and military requirements for the next two years. Looking ahead, Costa added, “Next step: securing Ukraine’s financial needs for 2026/27.”

The move also strategically prevents Russia from leveraging these assets in any future negotiations to end the war without the explicit consent of the European Union. The vast majority of the frozen funds – around €193 billion (£169 billion) as of the end of September – are currently held by Euroclear,a Belgian financial clearing house.

Rejection of Previous Asset Release Proposals

This decision follows the rejection of a 28-point plan proposed by US and Russian envoys last month. That plan stipulated the release of frozen assets for use by Ukraine, Russia, and the United States, but was swiftly dismissed by Ukraine and its European allies. French foreign Minister Jean-Noel Barrot affirmed the EU’s self-reliant stance on X (formerly Twitter), stating that the new decision ensures “no one will decide in place of the europeans the use of these funds.”

Strong Opposition from Hungary and Slovakia

The EU’s action has drawn sharp criticism from Hungary, whose prime minister Viktor Orbán – a known ally of Russian President Vladimir Putin – accused the European Commission of “systematically raping European law.” Orbán contends that the decision represents a disregard for the rule of law and places European leaders “above the rules,” warning that Hungary “will do everything in its power to restore a lawful order.”

Similarly, Slovak Prime Minister Robert Fico has declared his refusal to support any measures that would allocate funds towards Ukraine’s military expenses in the coming years, signaling a continued divergence in policy within the EU.

Implications and Future Outlook

The EU’

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