The EU is preparing to bypass Orbán and freeze Russian assets indefinitely
EU countries plan to fast-track a decision to freeze up to €210 billion in Russian assets indefinitely to avoid the risk of a block by Hungarian Prime Minister Viktor Orbán. This was reported by The Public with reference to Financial Times. The vote is planned to take place before next week's EU summit.
The legislative initiative provides for the use of emergency powers that allow national vetoes on sanctions to be circumvented. The aim is to ensure that the assets remain frozen and can be used to provide financial support to Ukraine, including a new €90 billion loan over the next two years.
Hungary, considered the most pro-Russian country in the EU, opposes further aid to Kyiv and regularly threatens to stop the extension of sanctions. Brussels fears that Budapest will exercise its veto, especially if Washington changes its position on sanctions.
The proposed mechanism is based on Article 122 of the EU Treaty, which allows decisions to be taken by a simple majority in the event of an economic crisis. This means that assets can be frozen indefinitely, rather than just for six months as is currently the case.
Belgium, where most of the funds are held through Euroclear, has expressed reservations about the legal and financial risks and is demanding guarantees of collective responsibility from other countries. The European Commission says it has taken almost all of the demands into account.
The issue of using assets to finance Ukraine is expected to be discussed by EU leaders at the summit on 18-19 December.
