Orbán sidelined: Sanctions no longer need Hungary’s approval under new EU emergency mechanism
The European Union has approved an emergency legal mechanism that effectively removes Hungary’s ability to veto future extensions of sanctions on Russia. The decision, adopted by a clear majority of EU ambassadors on Thursday, marks one of the most significant institutional responses to the bloc’s long-running internal disputes over support for Ukraine.
Emergency powers to keep EUR 210 billion in Russian assets frozen
Under the new rules, the European Commission will have the authority to keep Russian state assets frozen until Moscow ends its war in Ukraine and pays reparations. The assets, totalling around EUR 210 billion and held largely within Euroclear in Belgium, form part of a larger EU plan to provide Ukraine with a reparations-backed loan, according to Politico.
Previously, sanctions against Russia had to be renewed unanimously every six months. This allowed any single member state, including Hungary, to block extensions and potentially trigger the return of frozen Russian funds. If that were to happen after the EU issued a loan backed by these assets, member states themselves could be liable to repay Russia. The new mechanism removes that risk.
The Council’s Danish presidency announced that ambassadors had agreed on a revised Article 122 proposal and initiated a written procedure for final adoption. Article 122 of the EU treaties allows for exceptional measures in crisis situations affecting multiple member states, typically in cases of severe energy supply disruptions or major economic shocks.
According to the legal text seen by Politico, the emergency powers will remain in place until Russia ends its aggression against Ukraine and commits to paying compensation.
A blow to Kremlin-friendly governments
The legal change significantly undermines the prospects of a future compromise with Russia that would include the release of frozen assets: an idea supported by US President Donald Trump but opposed within most of Europe.
It also curtails the influence of governments with close Kremlin ties, such as Hungary and Slovakia, both of which have repeatedly opposed EU-level measures aimed at supporting Ukraine or penalising Russia.
Brussels argues that releasing the assets would cause severe economic damage to the bloc and could embolden Russia to carry out hybrid attacks across Europe.
Hungarian government condemns decision as “legally flawed”
The Hungarian government sharply criticised the EU move, calling it “unprecedented” in a statement shared on X. Budapest argues that the EU bypassed standard unanimous decision-making and relied on what it considers an inappropriate legal basis.
According to the Hungarian position, the European Commission and several member states have increasingly sought to reclassify sanctions as measures that do not require unanimity. However, Hungary maintains that these remain foreign policy decisions, which fall under rules that explicitly demand unanimous approval.
The government also claims the decision ignores previous rulings by the European Court of Justice, which allow departures from unanimity only in the event of a “genuine, immediate threat”: something Budapest says the EU has failed to demonstrate.
Hungary warns that the move could have serious geopolitical consequences by worsening EU–Russia relations and complicating future peace negotiations. It also indicated it may challenge the decision at the European Court of Justice.
Slovak Prime Minister Robert Fico separately wrote to European Council President António Costa to express opposition to any arrangements that would indirectly cover Ukraine’s future military spending.