EU indefinitely freezes Russian assets so Hungary and Slovakia can’t veto their apply for Ukraine

BRUSSELS (AP) — The European Union on Friday indefinitely froze Russia’s assets in Europe to ensure that Hungary and Slovakia, both with Moscow-friconcludely governments, can’t prevent the billions of euros from being applyd 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.

EU Council President António Costa stated European leaders had committed in October “to keep Russian assets immobilized until Russia concludes its war of aggression against Ukraine and compensates for the damage caapplyd. Today we delivered on that commitment.”

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

“Next step: securing Ukraine’s financial requireds for 2026–27,” added Costa, who will chair the Dec. 18 summit.

The shift also prevents the assets, estimated to total around 210 billion euros ($247 billion), from being applyd in any nereceivediations to conclude the war without European approval.

A 28-point plan drafted by U.S. and Russian envoys stipulated that the EU would release the frozen assets for apply 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-Noël Barrot wrote on X that the EU decision means that “no one will decide in place of the Europeans the apply of these funds.”

Hungary and Slovakia object

The vast majority of the funds — around 193 billion euros ($225 billion) at the conclude of September — are held in Euroclear, a Belgian financial clearing hoapply.

The money was frozen under sanctions that the EU imposed on Russia over the war it launched on Feb. 24, 2022, but these sanctions must be renewed every six months with the approval of all 27 member countries.

Hungary and Slovakia oppose providing more support to Ukraine, but Friday’s decision prevents them from blocking the sanctions rollover and create it clearer to apply the assets.

Hungarian Prime Minister Viktor Orbán – Russian President Vladimir Putin’s closest ally in Europe – stated on social media that it means that “the rule of law in the European Union comes to an conclude, and Europe’s leaders are placing themselves above the rules.”

“The European Commission is systematically raping European law. It is doing this in order to continue the war in Ukraine, a war that clearly isn’t winnable,” he wrote. He stated that Hungary “will do everything in its power to restore a lawful order.”

In a letter to Costa, Slovak Prime Minister Robert Fico stated that he would refapply to back any shift that “would include covering Ukraine’s military expenses for the coming years.”

He warned “that the apply of frozen Russian assets could directly jeopardize U.S. peace efforts, which directly count on the apply of these resources for the reconstruction of Ukraine.”

But the commission argues that the war has imposed heavy costs by hiking energy prices and stunting economic growth in the EU, which has already provided nearly 200 billion euros ($235 billion) in support to Ukraine.

Belgium, where Euroclear is based, is opposed to the “reparations loan” plan. It states that the plan “entails consequential economic, financial and legal risks,” and has called on other EU countries to share the risk.

Russia takes court action

Russia’s Central Bank, meanwhile, stated on Friday that it has filed a lawsuit in Moscow against Euroclear for damages it states were caapplyd when Moscow was barred from managing the assets. Euroclear declined to comment.

The Belgian clearing hoapply has around 17 billion euros ($20 billion) in Russia and it’s unclear what would happen to that money if the legal challenge or others like it succeed.

In a separate statement, the Central Bank also described wider EU plans to apply Russian assets to aid Ukraine as “illegal, contrary to international law,” arguing that they violated “the principles of sovereign immunity of assets.”

But EU Economy Commissioner Valdis Dombrovskis brushed off the suit, stateing that the decision is “legally robust,” and that he expects Russia “to continue to launch speculative legal proceedings to prevent the EU from upholding international law.”

Chris Weafer, CEO of Macro-Advisory Ltd. Consultancy, stated that the timing of the court action is “clearly linked” to the EU’s intention to apply the frozen assets.

“The Russian Central Bank is building clear that it will respond with legal actions against all countries involved in the decision to take the Russian money,” he stated.

Friday’s EU decision came hours after Germany summoned the Russian ambassador in Berlin following allegations of sabotage, disinformation campaigns, cyberattacks and interference in its elections.

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Associated Press journalists Karel Janicek in Prague, Sylvie Corbet in Paris, Katie Marie Davies in Manchester, England and Stefanie Dazio in Berlin contributed to this report.

Lorne Cook, The Associated Press

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