Hungary’s Orbán Condemns EU Over Plan to Lock Up Russian Assets

by Stefan J. Bos, Worthy News Europe Bureau Chief reporting from Budapest, Hungary

BUDAPEST (Worthy News) – Hungary’s embattled Prime Minister Viktor Orbán, widely viewed as Russian President Vladimir Putin’s closest ally within the European Union, has accused the EU’s executive arm of “systematically raping European law” over plans to lock up Russia’s frozen assets until Moscow ends its war in Ukraine and compensates for the devastation it has inflicted.

The European Commission, which prepared the proposal, says about 210 billion euros (roughly $247 billion) in Russian assets are currently frozen across Europe under sanctions imposed after Russia launched its full-scale invasion of Ukraine on February 24, 2022.

Most of those funds — around $225 billion as of late September — are held at Euroclear, a Belgium-based financial clearing house that manages securities transactions.

The assets were frozen under EU sanctions that must be renewed every six months, requiring unanimous approval from all 27 member states — a mechanism that has allowed Hungary and Moscow-friendly Slovakia to threaten repeated vetoes.

“LOCKING UP” RUSSIAN ASSETS?

EU officials stress that the proposed measure would not confiscate Russian state assets or transfer ownership away from Moscow.

Instead, the assets would be legally immobilized indefinitely, preventing individual member states from blocking future sanctions rollovers while keeping the funds frozen beyond Russia’s reach.

The “lock up” plan would also allow the EU to continue using profits, such as interest generated by the assets, to help finance Ukraine’s needs, while leaving the principal untouched.

EU diplomats say the mechanism is the most legally viable option to secure the assets without breaching international law or formally seizing Russian property.

EU TO ENDORSE PLAN

The European Union is expected to endorse the approach at a summit next week, viewing it as a way to prevent Hungary or Slovakia from blocking the renewal of sanctions.

Officials argue the step is essential to maintain long-term financial support for Ukraine amid uncertainty over future political unity within the bloc.

Orbán reacted angrily, writing on social media that the move signals “the end of the rule of law in the European Union” and accused EU leaders of placing themselves “above the rules.”

“The European Commission is systematically raping European law,” Orbán wrote. “It is doing this in order to continue the war in Ukraine — a war that clearly isn’t winnable.”

He warned that Hungary “will do everything in its power to restore a lawful order.”

SLOVAKIA JOINS OPPOSITION ON ASSETS

In a letter to European Council President António Costa, who will chair the summit beginning December 18, Slovak Prime Minister Robert Fico said he would refuse to back any move that “would include covering Ukraine’s military expenses for the coming years.”

Fico warned that using frozen Russian assets could “directly jeopardize U.S. peace efforts,” arguing that Washington envisions those resources being used primarily for Ukraine’s postwar reconstruction.

Hungary and Slovakia have repeatedly opposed deeper EU involvement in financing Ukraine’s war effort.

The European Commission counters that Russia’s invasion has imposed enormous costs on the EU, including higher energy prices and slower economic growth.

EU officials note that the bloc has already provided nearly $235 billion in financial, military, and humanitarian aid to Ukraine. They argue Russia should ultimately be held financially responsible for the war it started, stressing that the current proposal stops short of confiscation while ensuring the assets remain frozen.

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