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Hungary Sues EU Over Use of Frozen Russian Assets for Ukraine Military Aid

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Hungary Sues EU Over Use of Frozen Russian Assets for Ukraine Military Aid
Hungarian and EU flags are on display during a protest on the Elisabeth Bridge, blocking it, and later marching to the Office of the Hungarian President in Budapest, Hungary, on April 15, 2025. (Source: Getty Images)

The Hungarian government has taken legal action against the European Union over the use of frozen Russian assets to finance military aid for Ukraine. Budapest filed a lawsuit with the EU Court of Justice, challenging the Council of the European Union and the European Peace Facility (EPF).

This was reported by Portfolio on August 27.

Hungary submitted the lawsuit in July, and earlier this week the EU Court formally accepted it for review. The case specifically targets the Council’s decision of May 21, 2024, which stipulates that 99.7% of the net income generated from managing the frozen assets of Russia’s central bank must be transferred to the European Peace Facility.

In its filing, Hungary is demanding that the EU Court annul the Council’s decision to allocate revenue from Russian assets to the EPF. Furthermore, Budapest seeks to overturn the EPF’s March 2025 decision to use these funds directly for military support to Ukraine.

Hungarian officials argue that they abstained from the original vote on the use of Russian assets, and the EU’s interpretation of that abstention—namely, that the funds could be deployed without Hungary’s consent—is now at the center of their legal challenge.

Earlier, it was reported that US President Donald Trump succeeded in convincing Hungarian Prime Minister Viktor Orban to lift his blockade of talks on Ukraine’s accession to the European Union.

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