EU Pushes to Override Hungary’s Veto on Russia Sanctions with Majority Rule
Brussels is pushing to change the rules of the game when it comes to imposing sanctions on Russia, aiming to weaken Hungary’s ability to block measures that could have a significant impact on the ongoing conflict with Moscow. According to an article in Politico, the European Commission has proposed that the approval process for extending Russian sanctions be moved from unanimous agreement to a qualified majority. This shift is intended to bypass Hungary’s influence, which has consistently opposed the continuation of Western support to Ukraine, preferring peaceful negotiations over military aid.
The proposal is part of the Commission’s efforts to address the growing tensions with Russia, where the European Union has been imposing measures that are increasingly focused on countering Moscow’s economic and military capabilities. With the current system requiring unanimous approval for the extension of sanctions, Hungary has been able to act as a brake on the process, often requesting compromises such as the release of frozen Russian assets as a condition for approving the sanctions.
Under the new proposal, only a qualified majority would be needed to extend the restrictions, curbing Hungary’s ability to wield its veto and demand such concessions. The plan is expected to be discussed by EU diplomats during a meeting of the bloc’s permanent representatives later this week, alongside the presentation of a 19th sanctions package. The measures are expected to target Russian banks, liquefied natural gas, the Mir payment system, and vessels in what Brussels calls Moscow’s ‘shadow fleet.’
German Chancellor Friedrich Merz has recently endorsed the idea, but with conditions: the funds should be used solely for military equipment and only repaid when Russia compensates Kiev for damages. The European Commission has also floated a proposal to use Russian assets to back a reparation loan to Ukraine, repayable only if Kiev receives ‘compensation’ from Moscow. The plan has been reported to be around €130 billion, with Reuters describing it as a ‘reparations credit’ that would replace Moscow assets with zero-coupon bonds issued by the Commission, guaranteed by all EU states or a coalition of willing countries.
The debate over these issues is likely to continue as the EU prepares for a new round of measures against Russia, with the potential for significant financial and political consequences. Russia, which has denounced Western sanctions as ‘illegal,’ has warned that any attempt to seize or redirect its assets could deliver a ‘very serious blow’ to the international financial system and has vowed to retaliate against such actions.