The European Union is poised to lock up Russia’s assets held in Europe, a move intended to force Moscow to end its war in Ukraine and provide reparations for nearly four years of devastation.
Expected on Friday, this decision is a crucial step towards EU leaders agreeing next week on how to leverage tens of billions in Russian Central Bank assets to underwrite a significant loan for Ukraine’s financial and military needs over the next two years.
However, the initiative has drawn fierce condemnation from Hungarian Prime Minister Viktor Orbán, Russian President Vladimir Putin’s closest ally in Europe.
He accused the European Commission, which prepared the decision, "of systematically raping European law."
A total of €210 billion ($247 billion) in Russian assets are frozen in Europe. The vast majority of the funds — around €193 billion ($225 billion) at the end of September — are held in Euroclear, a Belgian financial clearing house.
These funds were frozen under sanctions imposed by the EU following Russia's full-scale invasion on 24 February, 2022. Their continuation requires renewal every six months, subject to approval from all 27 member states.
Hungary and Slovakia oppose providing more support to Ukraine.
Friday’s expected decision, which is based on EU treaty rules allowing the bloc to protect its economic interests in certain emergency situations, would prevent them from blocking the sanctions rollover and make it easier to use the assets.
Orbán said on social media that it means that “the rule of law in the European Union comes to an end, 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 said that Hungary “will do everything in its power to restore a lawful order.”
In a letter to European Council President António Costa, who will chair the summit starting on 18 December, Slovak Prime Minister Robert Fico said that he would refuse to back any move that “would include covering Ukraine’s military expenses for the coming years.”
He warned “that the use of frozen Russian assets could directly jeopardise US peace efforts, which directly count on the use 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 ($235 billion) in support to Ukraine.
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