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EU officials are taking a series of countermeasures, including an 81-year-old law involving Belgium’s king, to protect the bloc’s sanctions against Russia after Hungary threatened to resist renewal.
Hungarian Prime Minister Viktor Orbán told the group’s 26 other leaders in December that the EU could lift sanctions on Russia this month, which would require universal approval – a move that expires on January 31.
Orbán said on Monday that he was waiting for the inauguration of Donald Trump as the president of the United States. If Trump eases US sanctions against Moscow, Orban said he would continue to insist that the EU should follow suit.
“There is a big change in American governance right now. . . Hungary’s EU Affairs Minister János Bóka told reporters that a meaningful exchange must be made before we decide to replace the sanctions regime for another six months. We intend to reserve our decision until we know how the US administration views the future of sanctions.
The release of the Biden administration on Wednesday About 100 bodies have been registered Separate legislation from the finance, energy and defense sectors includes Congress to complicate Trump’s efforts to remove Russia from the sanctions list.
While EU officials are focused on persuading Orban to keep sanctions on Russian companies and sovereign assets in the EU, they are working on steps that could protect at least some of them.
They include about €190bn of Russian state assets on the Belgium-based central securities depository Euroclear. Profits from the assets will repay a $50 billion loan to Ukraine and officials believe they are a critical part of the ceasefire.
If sanctions are passed, an official said, “the money in Russia the next day” as financial intermediaries will have no legal basis. Trade restrictions and sectoral sanctions, such as oil import bans, will also end.
“I am very concerned about this and others should be,” said a senior EU diplomat who has been in regular talks with Hungarian officials. There is a big chance that Orbán won’t break.
As state assets are physically held by a Belgian entity, one fallback option is to use a 1944 wartime decree that allows King Philippe to block the transfer of assets out of the country, four officials involved in the discussions said.
The royal palace declined to say whether they had approached the king, despite the fact that he was responsible for signing the decree.
Euroclear declined to comment.
“Belgium is doing everything possible to reach an agreement with the other EU member states to renew the sanctions imposed on Russia. We have been able to reach an agreement in the past and we will continue our efforts to make it happen this time,” said the spokesperson of the Belgian Ministry of Foreign Affairs.
Belgium has long resisted the implementation of national measures regarding immovable property, leaving it open to legal challenges from Russia. A Belgian official said the use of extraordinary powers would violate Belgium’s bilateral investment treaty with Russia.
“If Orbán does not agree, the only solution is national,” said a senior commission official who attended the event.
Several member states have floated proposals to strip Hungary of its voting rights to push through reforms, but such a drastic move is unlikely to garner the necessary universal support from other states.
According to Anita Hipper, the spokeswoman for the European Union’s foreign affairs, efforts are being made to ensure a smooth and timely agreement by the member states to extend the sanctions.
Additional reporting by Henry Foy and Martin Dunay in London and Andy Bounds in Brussels
