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Brussels eyes loophole to isolate Hungary, send billions in Russian assets to Ukraine

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Four people briefed on the plans told POLITICO the Commission is hoping to base its action on a set of European Council conclusions that all EU leaders, including Orbán, agreed to on Dec. 19 last year.

In that statement, the leaders declared: “Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by this war.” At the time, that statement had largely been understood to mean the assets themselves should remain frozen, mainly at Euroclear bank in Belgium, and not accessed by Russia, while interest could be used for the war effort.

The Commission’s new argument is that this statement provides sufficient cover to change the sanctions rules from unanimity to a qualified majority. For that to work, all or most of the other countries would have to agree.

“This would require a high-level political agreement by all or most Heads of State or Government,” the Commission said in a note to EU ambassadors meeting on Friday.

Not just Hungary

Winning that broader agreement will not be easy. There are other Russia-friendly nations in the potential mix, such as Slovakia.

Then there’s the Belgium problem. The Belgian government has already pushed back amid concerns that the EU’s cash grab could expose Belgium and Euroclear, a financial institution that houses Russia’s frozen state assets, to legal retaliation from Moscow.

EU Affairs

Libyan militia fires on Sea-Watch migrant rescue ship, escalating EU tensions

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Sea-Watch spokesperson Giulia Messmer said the incident is part of a pattern of growing attacks.

“We saw in the last couple of weeks that the violence on the central Mediterranean is escalating … this is definitely not a single occurrence,” she told POLITICO.

Sea-Watch reported that a Corrubia-class patrol boat — identified as belonging to Libya — ordered the Sea-Watch 5 to turn north, a move that would have interrupted the rescue. When the crew did not comply, the patrol boat opened fire, the organization said.

The NGO issued a mayday call and a Frontex surveillance plane later confirmed the Libyan vessel trailing eight nautical miles behind, according to Sea-Watch. The Italian-built boat involved was supplied to Libya in 2018 as part of an EU-backed effort to curb irregular migration, despite repeated allegations of human rights abuses.

The incident mirrors an attack on Aug. 24, when the rescue ship Ocean Viking, operated by the French NGO SOS Méditerranée, came under fire from a Libyan patrol boat financed by EU funds via Italy’s SIBMMIL program, triggering a major political row in Italy and abroad.

Friday’s incident also comes two days after the European Commission defended continued cooperation with Libya, following a letter signed by multiple NGOs urging Brussels to suspend ties.

“What on earth more does the European Commission need to suspend its support for this reckless, unaccountable force?” Judith Sunderland, Associate Director of Human Rights Watch, said on Friday.

“We see no real commitment to Europe’s proclaimed values and will continue to question the current political approach, which offers no security to European citizens or to people who have the right to seek asylum in the EU,” Messmer said.

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EU Affairs

Spy drones flew into Ukraine from Hungary, Zelenskyy says

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Hungarian Foreign Minister Péter Szijjártó hit back in a post on X: “President Zelenskyy is losing his mind to his anti-Hungarian obsession. He’s now starting to see things that aren’t there.”

Ukrainian-Hungarian relations have deteriorated in recent months, as Budapest persists in blocking Ukraine’s EU accession. Last month, Kyiv’s forces started bombing the Druzhba oil pipeline, which fuels Budapest with Russian energy.

In response, Hungary banned Robert Brovdi — a key Ukrainian commander — from entering the country. Ukraine responded by imposing an entry ban on three high-ranking Hungarian military officials.

“Our mirror response to Hungary’s earlier baseless entry ban for our military officials. Hungary’s every act of disrespect will be met with adequate response, especially disrespect for our military,” Ukrainian Foreign Minister Andrii Sybiha said Friday.

Szijjarto responded by saying Ukraine has “carried out an anti-Hungarian policy for a decade.”

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EU Affairs

EU moves forward with drone wall

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On Friday, the Commission gathered defense ministers from Bulgaria, Estonia, Finland, Latvia, Lithuania, Poland and Romania. Hungary, Slovakia and the Danish Council presidency were also represented. In a separate meeting where NATO was present as an observer, Ukraine’s Defense Minister Denys Shmyhal briefed them on his country’s “battle-tested expertise.”

Participants agreed the drone wall should include detection, tracking and interception capabilities, the Commission said. Other assets should include ground-based defenses, such as anti-mobility systems, maritime security as well as space-based situational awareness.

In a bid to bring Southern European countries and those more distant from Russia on board, both the European Commission and front-line nations insisted that Russian drones posed a risk to the bloc as a whole, not only Central and Eastern Europe.

The drone incursions in Denmark — which the government says may be linked to Russia — show that “the threat is not limited to the eastern flank, that drones could be launched from a nearby ship or vessel,” Polish Defense Minister Władysław Kosiniak-Kamysz said.

The drone wall will be on the agenda of next week’s informal EU leaders’ meeting in Copenhagen. The Commission will now come up with “a detailed technical roadmap with national experts” as well as “build a comprehensive EU financial toolbox to make this shield a reality.” The project could be funded by the €150 billion loans-for-weapons SAFE scheme and the €1.5 billion European Defence Industry Program (EDIP), but Brussels is also looking at other options.

Ukraine, which has more than three years of battlefield experience against Russian drones, is ready to participate and provide expertise, including by sending technical teams to train EU and NATO armed forces, Shmyhal said.

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