Hungary files lawsuit against Council of the EU’s decision on Ukrainian aid

Hungary has filed a lawsuit against the Council of the European Union’s decision at the Luxembourg-based General Court. The Hungarian government claims that it is unlawful to allocate almost all yields from frozen Russian central bank assets to support Ukraine. The legal case may last for years, but could set a precedent for future decision-making.

Hungary initiates lawsuit

As reported by Portfolio, Hungary has submitted an application to the General Court of Luxembourg contesting decisions of both the Council of the European Union and the European Peace Facility (EPF). The government objects to the fact that yields from frozen Russian central bank assets are being almost entirely used (99.7 percent) for military support to Ukraine.

According to Hungary, the Council’s resolution adopted in May 2024 and the EPF’s implementing decision from February 2025 violate the EU’s fundamental principles of lawful decision-making. The official lawsuit was launched on 25 August, when the case was listed in the Official Journal of the European Union. Although the proceedings are only at an early stage, the outcome could have far-reaching implications for the future application of veto rights.

Billions at stake

The stakes are high: around EUR 200 billion of Russian assets are frozen in EU member states, generating annual yields of EUR 3–5 billion. According to current regulations, these resources are directed partly toward military support and partly to civil objectives.

So far, the EPF has awarded more than EUR 11 billion to Ukraine, and a permanent source of revenue could be opened. However, Hungary objects that its vote was disregarded in the process, on the grounds that it was not considered a “contributing Member State”. The Hungarian side claims this violates the decision-making procedures codified in the EU’s foundational treaties.

Political and legal consequences

The political weight of the case is considerable. In recent years, Hungary has repeatedly exercised its veto power over financial packages supporting Ukraine, including the EUR 50 billion aid package approved at the end of 2023. As a result, several member states have sought mechanisms to bypass obstacles created by unanimous decision-making.

According to the European Council’s legal service and the majority position, the use of yields from frozen assets does not constitute a new budgetary commitment, thus not requiring unanimous approval. If the court sides with Hungary, future Council decisions of this kind may be subject to stricter legal oversight.

Lengthy process ahead

Proceedings before the General Court may take years. The written phase will be followed by the Advocate General’s opinion, then hearings, and ultimately a ruling, with potential appeals to the Court of Justice of the European Union. In the meantime, the contested decision remains in force, allowing continued support financed from asset yields.

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3 Comments

  1. Good.

    Whatever one thinks of the conflict, and especially of Russia, this is clearly illegal.

  2. The pseudonym he/she commentates, this Michael Steiner – known for being a Full Member, an admirer supporter – of the “ill-fated” Prime Minister of Hungary – Victor Mihaly. Orban his Fidesz led Political Party “mouthing off” admiration support of Orban, over (15) fifteen “in-glorious” years as the Government of Hungary adorned in “Demigod” status – REPLUSIVE.
    Steiner “claims” of wife being born in Hungary.
    Steiner “claims” of having lived in 42 countries globally.
    Truth is Truth which this individual under the commentator name of Michael Steiner over (4) four years – his commentaries has FAILED.
    Steiner, his commentaries are a “set up” of “veiled” fact & truth – of representation, and are greatly influenced – controlled and managed by the Fidesz Political Party, of who he/she is of Full Membership.
    Steiner – in the past you have been invited to come out from beneath your “hidden” face, invited even to meet with “other” commentators, who write commentate with an “open” mindedness, of NO “devotion” to a Political Party Membership.
    Steiner – you have been “Educated” prior in the “style” the tone of your blind one directional Political opinions and views that the DANGER of an individual that you exhibit to the full, is that your belief considering yourself the adapted position you “pontificate” – that the Fidesz Political Party under the leadership of Victor Mihaly. Orban – he, his Fidesz led Party DELIVERING after (15) fifteen years in Government, the country Hungary that represents a cataclysmic Mess/Shambles your opinion, your “un-moved” position confirms support of a Dictatorial regime of Government, that factually we know, is that of Victor Mihaly. Orban.
    Spring of 2026 the continual PRESSURIZATION rightful of the European Union of Global Democracy on the “Judas” of European and Global DEMOCRACY – Victor Mihaly. Orban – deepening population in Hungary destabilization and financial and economic DECLINE through an Orban led Government that is DEBT “infested” taxpayer Debt and Debt in Fines also of population / citizens DEBT – through the “Heinous” led Fidesz Government of Hungary by Victor Mihaly. Orban.
    Spring 2026 – wow the DOWNFALL of the “Demigod” of Michael Steiner through the POWER of the Hungarian population, an “ageing” decreasing in number population of 9.6 million that deaths of Hungarians monthly outnumber new “little ones” being born, the TREND monthly over the (15) fifteen years of Orbans Prime Ministership – that sees Hungary with over 1.2 million of its “ageing” declining population living in Poverty.
    Democracy – unity, solidarity the WAY forward to again “feed into” Hungary having a FUTURE being of N.A. T. O. memberships of FULL embracement and practice of being a member country of the European Union, the “re-establishing” of destroyed friendships / relationships of countries under the Governance of DEMOCRACY caused by Victor Mihaly. Orban through his personally led and “ruthless” drive – to effect the Distillation of DEMOCRACY in Hungary.
    PEOPLE – the POWER of the PEOPLE speaking in the Spring of 2026 the GLORIOUS celebration probability GROWS to “bear witness” of the OUTING, the end of the abusers, the “heinous” government, a Government of “poisonous Infested” Culture – of Greed and Corruption – of Selfishness and of their EXPLOTATION of them Orban his pocket, his wealth, a culture Orban “signed off” as a Fidesz Political Party Policy or CREED that we have WITNESSED as Hungarians – we have been betrayed, failed and ABUSED.
    Victor Mihaly. Orban – his Fidesz led Government have NO friends GLOBALLY that are Governed or “embrace” the word DEMOCRACY.
    Victor Mihaly. Orban – friendships, his “heinous” Government, the “lining of there pockets” firstly at the VILENESS of expense to the citizens of Hungary – Demonic.
    Orban, his Fidesz Government have NOTHING, absolutely NOTHING, to add to the FUTURE of Hungary having DELIVERED us, as a country to being in a “new age abyss” a dark place that the nadir, we have been DELIVERED to by the Victor Mihaly. Orban – Fidesz Government of Hungary over (15) fifteen years, places the FUTURE of our country the quality of our lives, our children, our grand-children the FUTURE of the name of our Beloved – Hungary – in a place being of GRAVE un-certainty.
    Spring of 2026 – People POWER orderly – CHANGE of HOPE for Hungary.

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