Hungary sues EU over transfer of Russian bank profits to Ukraine

Hungary has filed a lawsuit with the General Court of Europe in Luxembourg against the Council of the EU and the European Peace Fund (EPF) for transferring profits from frozen assets of the Central Bank of Russia to Ukraine without Budapest's consent, RIA Novosti reported.

"Hungary has filed a lawsuit with the Luxembourg General Court against the Council of the EU and the European Peace Fund, protesting against Ukraine's use of funds from the frozen assets of the Central Bank of Russia," Portfolio said.

The lawsuit was filed in July and accepted for review on August 25.

The Hungarian government is protesting the EU Council's decision in May 2024 to send 99.7% of Russia's frozen assets to the EPF, as well as the EPF Management Board's decision in February 2025 to send money to Ukraine.

"In making the controversial decision, the EPF Commission violated the above provisions by stating in its decision that Hungary was deemed not to be a 'contributing country', could not participate in the vote and therefore its vote was disregarded," the newspaper quoted the lawsuit as saying.

The portfolio talks about 3 to 5 billion euros a year; the EPF has transferred 11 billion euros to Ukraine, most of which was used to buy weapons.

It is worth noting that the court’s ruling could have precedential value. If Hungary wins, the process cannot be repeated and similar votes in the EU Council will have to be considered individually. However, if Budapest loses, this could lead to similar circumvention of Hungary’s veto in the future.

Meanwhile, Hungarian Foreign Minister Peter Szijjarto affirmed that Hungary will never support Ukraine's rapid accession to the EU, which would be a fatal blow to the alliance.

Mr. Szijjarto noted that if Ukraine joined the European Union, "it would have to give up all its financial resources to the EU and Ukraine would destroy its agriculture."