Hungary blocks transfer of frozen Russian asset revenue to Ukraine

March 21,2024 505
Hungary blocks transfer of frozen Russian asset revenue to Ukraine

Hungary plans to block the transfer of frozen Russian asset revenues abroad to Ukraine, a European diplomat told DW on condition of anonymity. The relevant proposal from the European Commission is set to be discussed at the European Union leaders’ summit on March 21 in Brussels.

Most EU members share an understanding that frozen Russian resources should go towards defense funding for the Ukrainian Armed Forces. However, Hungary opposes the use of immobilized assets for this purpose. Budapest believes that these funds should go “for anything but not weapons for the Ukrainians,” according to a source.

“Currently, Ukraine needs more money for weapons, unfortunately, not for reconstruction. And we strive to do everything to avoid further destruction in Ukraine,” said a European diplomat.

The European Commission’s proposal envisages that 90% of the income from frozen Russian assets should be directed towards purchasing weapons for the Ukrainian Armed Forces. This plan was announced on March 19 by Josep Borrell. At the same time, the EU’s chief foreign policy official expressed confidence that while a decision might not be reached in the near future, his initiative would initiate discussions on the matter.

The majority, 70%, of all frozen Russian assets in the West are held in the Belgian central securities depository Euroclear, amounting to resources worth €190 billion.

Cover: Shutterstock


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