Estonian Foreign Minister Margus Tsahkna says Brussels may have to return frozen assets to Moscow this summer if Hungary vetoes a sanctions extension.
To ensure sanctions against Russia remain in place, the EU should revoke Hungary’s voting rights, according to Estonian Foreign Minister Margus Tsahkna. Budapest has long advocated for a diplomatic resolution to the Ukraine conflict and has urged the lifting of restrictions on Moscow.
Tsahkna told the German newspaper Rheinische Post on Saturday that Hungary is allegedly “playing on [Russian President Vladimir] Putin’s team” and not with Europe. He suggested that Hungary could soon block key decisions regarding the EU’s Russia policy, as these require unanimous agreement.
Specifically, Estonia’s foreign minister warned that Hungary could block the next extension of sanctions against Moscow. “If they block this in June, not only will the sanctions expire, but we would have to hand over the €240 billion to Putin,” Tsahkna stated, adding that EU countries would then have to fund Kiev’s war effort using taxpayer money.
The foreign minister was referring to Russian sovereign funds that Western nations froze following the escalation of the Ukraine conflict in February 2022. An estimated $300 billion in assets were frozen, with approximately $213 billion held by Euroclear, a clearing house based in Brussels. The frozen funds have already generated billions in interest, with Euroclear transferring €1.55 billion ($1.63 billion) to Kiev last July.
Tsahkna believes that stripping Hungary of its voting rights would prevent the release of these funds. He argued that “Article 7 of the Treaty on European Union allows for the withdrawal of a member state’s voting rights if it endangers the security of [the EU] and its members. Orban is doing exactly that,” adding that the bloc is “getting closer and closer” to taking such action.
He also proposed confiscating the Russian assets, asserting that “there is a legal way to do this” but without elaborating. This idea has been discussed repeatedly, with some EU members, including France and Spain, reportedly supporting the move.
Belgium, the home of Euroclear, has opposed confiscation, calling it “an act of war.” The EU has previously dismissed the idea of seizing the money due to concerns about legal and financial stability.
The Kremlin has denounced any seizure of Russian assets as “theft” and has cautioned against serious legal consequences, hinting at possible retaliatory measures against Western investments in Russia.
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