Brussels will have to return frozen assets to Moscow this summer if Budapest blocks a sanctions extension, Margus Tsahkna has said
The EU needs to deprive Hungary of its voting rights within the bloc to ensure sanctions on Russia stay in place, Estonian Foreign Minister Margus Tsahkna has said. Budapest has long advocated a diplomatic solution to the Ukraine conflict and called for restrictions against Moscow to be lifted.
Hungary is allegedly “playing on [Russian President Vladimir] Putin’s team” and “not on our European team,” Tsahkna told the German newspaper Rheinische Post in an interview published on Saturday. He stated that Budapest could bloc some key decisions related to the bloc’s policy on Russia in the near future, since they require unanimity.
In particular, Hungary could block the next extension of sanctions on Moscow, Estonia’s top diplomat said. “If they block this in June, not only will the sanctions expire, but we would have to hand over the €240 billion to Putin,” Tsahkna said, adding that EU nations would then have to fund Kiev’s war effort with the money “from our taxpayers.”
The foreign minister was referring to Russian sovereign funds frozen by Western nations following the escalation of the Ukraine conflict in February 2022. An estimated $300 billion worth of assets were frozen in total, with around $213 billion of that held by Euroclear, a Brussels-based clearing house. The frozen funds have already accrued billions in interest, of which Euroclear transferred €1.55 billion ($1.63 billion) to Kiev last July.
According to Tsahkna, Hungary should be stripped of its voting rights to prevent the funds from being unlocked. “Article 7 of the Treaty on European Union provides for the possibility of withdrawing a member state’s voting rights if it endangers the security of [the EU] and that of the other members. So that’s exactly what Orban is doing,” he claimed, adding that the bloc is “getting closer and closer” to such a step.
He also suggested confiscating the Russian assets, claiming that “there is a legal way to do this” but providing no details. The idea has repeatedly been floated, with some EU members, including France and Spain, reportedly pushing for the move.
Belgium, which hosts Euroclear, has opposed confiscation, calling it “an act of war.” The EU has previously rejected seizing the money as well due to legal and financial stability concerns.
The Kremlin has condemned any seizure of Russian assets as “theft” and warned of serious legal repercussions, hinting at possible retaliatory measures against Western investments in Russia.
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