A historic legal shift strips Hungary and Slovakia of their blocking power, unlocking billions in aid for Kyiv
The European Union has made a groundbreaking decision regarding the economic war against Moscow. In a move designed to sideline internal opposition, the EU freezes Russian assets indefinitely. This decisive action, finalised on Friday, ensures that the sanctions on Russia’s Central Bank reserves no longer require a renewal every six months. Consequently, it effectively removes the power of Hungary and Slovakia to block these critical financial measures. By locking down these funds permanently, Brussels aims to secure a massive financial lifeline for Kyiv as the conflict pushes into its fourth year.
The End of the Veto Trap
For years, the bloc operated under a rigid system where all sanctions required unanimous agreement from all 27 member states. This structure allowed single nations to hold the entire union hostage for political leverage. However, this new ruling changes the diplomatic landscape completely. By invoking Article 122, an emergency economic clause, the European Commission bypassed the strict requirement for unanimity. Now, the EU freezes Russian assets until Russia officially ends the war and pays for damages. Therefore, leaders like Viktor Orbán can no longer threaten to lift the sanctions during the semi-annual review process.
Unlocking the G7 Loan
This legal maneuver was essential for cementing global cooperation. The United States had previously refused to fully participate in a $50 billion G7 loan unless the EU guaranteed that the funds would remain blocked for the long haul. Washington feared that a single European veto in the future could unfreeze the money, leaving American taxpayers exposed to the debt. With this new indefinite ban, the EU freezes Russian assets securely enough to satisfy US demands. As a result, the loan can finally proceed, funded entirely by the windfall profits generated from these immobilised billions.
Russia and the “Frontier” States React
The reaction to this decision has been swift and furious. Hungary’s Prime Minister Viktor Orbán condemned the move, calling it a violation of the rule of law and a “crossing of the Rubicon.” Meanwhile, Moscow has already filed lawsuits against Euroclear, the Belgium-based clearinghouse that holds the majority of the funds. Despite these legal threats, the bloc remains firm in its stance. Officials argue that since the EU freezes Russian assets to protect its own economic stability, the decision is legally sound. This bold step signals that Europe is prioritising Ukraine’s survival over internal diplomatic niceties.
The Hinge Point
While most reports focus on the financial aid, the true significance lies in the constitutional “hack” the EU just performed. By shifting the legal basis from Foreign Policy (Article 215) to Economic Emergency (Article 122), Brussels has effectively weaponised its own treaty to strip member states of their sovereignty in foreign affairs. This sets a controversial precedent. If the EU freezes Russian assets using qualified majority voting today, it could theoretically use the same mechanism to bypass vetoes on other sensitive geopolitical issues tomorrow. It marks a silent but permanent shift from a union of consensus to a union of majority rule.