Positions within the EU on frozen assets diverge
Disputes continue in the European Union over how to use frozen Russian assets to assist Ukraine. Although German Foreign Minister Johann Wadephul stated that this issue has been definitively resolved, the stance of the European Commission and the European Parliament differs. Meanwhile, active work on a mechanism for their use is currently not being pursued, despite the fact that most of these funds are held in the Belgian depository Euroclear.
European Commission President Ursula von der Leyen noted that the 90 billion euro loan was agreed upon by all 27 EU leaders. However, European Commission spokesman Balázs Ujváry emphasized the divergence from Wadephul’s statement:
“I think our opinion on this matter differs somewhat.” - Balázs Ujváry
The European Council on December 18, 2023, called for continued work on the technical and legal aspects of the reparatory loan. In turn, the European Parliament on February 24, 2024, adopted a resolution calling for the use of frozen assets of the Russian Central Bank for these purposes.
Blocking by Hungary and the search for solutions
Currently, there is no active work on a new legislative initiative for the use of frozen assets. EU diplomats express doubts about the willingness to raise this topic again:
“Who will find the energy and courage to raise this issue again? I don’t see anyone ready for that.”
At the same time, other diplomats note that “if the war drags on for another three to four years, we will need the frozen assets – sooner or later.”
Hungary continues to block the allocation of the loan, raising questions about its strategy. Parliamentary elections in Hungary are scheduled for April 12, and their outcome may affect the country's position in further negotiations. For Russia, these assets represent a significant part of its international reserves, and their possible seizure would be an unprecedented step in global financial practice. While European leaders look for a solution, the question of using frozen funds remains open.
The current situation vividly illustrates the difficulties of coordination within the European Union on issues of support for Ukraine, where a single member state can block a key financial decision. The blockage from Budapest reflects both the internal political situation in Hungary and broader disagreements within the EU. Given the potential prolongation of the conflict, finding long-term sources of funding for aid to Ukraine, including frozen Russian assets, is becoming an increasingly urgent task.