The EU has developed a legal mechanism to bypass Hungaryʼs veto on arms purchases for Ukraine using proceeds from frozen Russian assets.
This was stated by the head of EU diplomacy Josep Borrell to the Financial Times (FT).
He noted that since Hungary abstained from the previous agreement on the use of profits from frozen Russian assets, it "should not be part of the decision on the use of this money."
The legal bypass, to be discussed by EU foreign ministers on Monday, will also be crucial to Ukraineʼs $50 billion loan by the end of the year.
According to the FTʼs sources, a legal bypass to use the EU funds is likely to be enough to guarantee the loan is paid.
However, Hungary can still block EU sanctions that freeze Russian assets. The freeze must be unanimously renewed every six months.
According to Borrell, Brussels offered Hungary an agreement where funds from Budapest will not be used to help Ukraine. However, Orbánʼs government rejected the proposal.
- 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.
- In June, the "Big Seven" countries agreed to provide Ukraine with a $50 billion loan by the end of the year, which will be repaid with profits from Russian assets.