Hungary files a lawsuit with the EU Court of Justice over the use of frozen assets of the Russian Federation to help Ukraine
28 August 2025 19:05
Viktor Orban’s government has appealed to the Court of Justice of the European Union against the decision to allocate the proceeds of frozen Russian assets to military aid to Ukraine.
This was reported by Portfolio, "Komersant Ukrainian" reports.
The lawsuit against the EU Council and the European Peace Facility (EPF) was filed in July, and this week the EU Court of Justice accepted it for consideration. Hungary demands to cancel the EU Council’s decision, which created the legal basis for using the proceeds of Russian assets to support Ukraine.
In addition, Budapest is challenging the March 2025 decision of the European Peace Fund itself to direct these revenues to finance the military needs of the Ukrainian Armed Forces.
Orban’s government claims that Hungary abstained from the decision to use the proceeds from Russian assets. However, other EU countries have decided that this allows them to allocate funds without Budapest’s consent. It is this approach that the Hungarian authorities are trying to challenge.
The European Peace Facility, established in 2021, plays a key role in financing weapons and equipment for the Ukrainian army after Russia’s full-scale invasion. In particular, it is used by EU countries to compensate for the costs of transferring weapons and ammunition to Ukraine.
Context: frozen assets of the Russian Federation
After the start of Russia’s full-scale war against Ukraine, the EU and the G7 countries froze approximately $280 billion of Russian sovereign assets located in Western jurisdictions. In June 2024, the G7 leaders agreed to provide Ukraine with a $50 billion loan to be repaid from the proceeds of these assets.
At the end of 2024, Ukraine received its first financing under this scheme – $1 billion from the United States. The European Union has also decided to direct annual revenues from Russian funds to the European Peace Fund for the purchase of weapons and military equipment for Ukraine.
