EU could bypass Orbán’s veto to unlock record Ukrainian loan from frozen Russian assets
The EU’s new potentially “veto-proof” proposal could allow up to €90 billion to be mobilized in support of Ukraine using frozen Russian state assets. Hungary’s position was clearly expressed by Foreign Minister Péter Szijjártó at the NATO Foreign Ministers’ meeting, emphasizing Budapest’s objections to the plan.
The fate of frozen Russian assets has been a topic of debate among EU member states for months. Legally, the money belongs to Russia, but the EU already uses part of its returns to support Ukraine. The Commission now aims for a much larger scale: mobilizing the full amount, complemented by a loan-like mechanism, which would constitute one of the largest financial packages for Ukraine since the start of the war.
“While we see Russia’s attacks intensifying, Ukraine’s financing needs are simultaneously increasing. According to IMF estimates, Ukraine will require around €135 billion over the next two years,” said Ursula von der Leyen, President of the European Commission.
Currently, a unanimous decision is required every six months to keep the Russian assets frozen. If a member state vetoed the proposal, the entire mechanism could be jeopardized, as the funds would theoretically have to be returned to Moscow.
According to Politico, the EU Treaty’s Article 122 could provide a legal workaround, allowing member states to make decisions by qualified majority in exceptional economic situations.
If the proposal is approved, the EU would effectively create a safeguard over the decision-making process, ensuring that frozen Russian assets can be mobilized for Ukraine’s support over the long term. Critics argue, however, that this solution could weaken member states’ veto rights and pose significant risks.
“Not a single penny!” – Szijjártó responds sharply
Hungary’s Foreign Minister Péter Szijjártó also reacted to the plan at the NATO Foreign Ministers’ meeting:
“No matter what Ursula von der Leyen proposes, even if she turns upside down or does whatever, the money of the Hungarian people will not go to Ukraine, not a single penny,” Szijjártó said.
“Instead of sending more money to Ukraine, they should be made to account for how they spent the funds sent by European citizens, and how much of it their war-time mafia, organized at the highest levels of the state, has taken from what European taxpayers provided.” – added the Hungarian foreign minister.
Szijjártó referred to the recent Ukrainian corruption scandal, which led to the resignation of President Zelensky’s chief of staff at the end of November. It is, however, not proven that President Zelensky or Ukraine’s top-level leadership were personally involved.
Belgium also opposes the Ukrainian loan package
Since Belgium’s banking system manages a significant portion of the frozen Russian assets, the country’s biggest concern is that a veto from any EU member state—such as Hungary or Slovakia—could prevent the extension of sanctions. In that case, the Belgian government would theoretically have to return the frozen billions to Russia.
The Belgian Prime Minister therefore considers the proposed “reparations loan” for Ukraine the worst possible instrument, as using the frozen assets carries too much risk: potential legal proceedings and claims from Russia could easily exceed the value of the assets, including interest and lost returns.
The final decision is expected on December 18 at the EU leaders’ summit, where member states will vote on the qualified majority solution. Hungary and other vetoing countries could influence the outcome, making their positions crucial for the future of the frozen Russian assets.
Cover photo: © European Union 2024 – EP
A small country that receives more money from the EU than it pays in is trying to act like it’s protecting EU taxpayers. It uses its veto to block what most other members want, while its own budget depends on the EU’s support. It’s like biting the hand that feeds you and calling yourself a guard dog.