Hungary is delaying the financing of arms for Ukraine from the proceeds of the frozen assets of the Russian Federation

Hungary is delaying legislation that would allow Ukraine to receive up to €2 billion from the EU for armaments through the proceeds of frozen Russian assets.

This is reported by the Financial Times with reference to sources.

After months of debate, EU countries agreed this month to use the proceeds of nearly €190 billion stuck in Belgiumʼs central securities depository, Euroclear, to buy arms for Ukraine.

But the Hungarian ambassador opposed the acceleration of payments.

"At the moment, they are blocking everything related to military support for Ukraine," said one of the interlocutors, suggesting that Budapestʼs reservations will remain at least until next monthʼs European elections.

According to a second interlocutor, in order to reach an agreement on the use of profits from frozen Russian assets, EU officials offered Hungary a deal under which their share of the funds allocated by Brussels would not be used to purchase weapons for Ukraine.

This convinced Budapest not to veto the scheme, but it is delaying compliance by failing to support the necessary legislation. Budapest is not opposed in principle, but has concerns about automating payments, sources say.

• The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash.
• On May 21, EU member states approved a plan for using profits from frozen Russian assets. The money will go to rebuilding Ukraine and military aid.
• The European Commission said that the first payments will take place already in July. In general, annual revenue is expected to reach €2.5-3 billion.