The Financial Times reported that the European Union (EU) is considering using World War II-era laws to protect sanctions against Russia if member Hungary breaks the consensus.
With Hungarian Prime Minister Viktor Orban threatening to deny the extension of EU sanctions on Russia, European officials are considering preventive measures, including citing a 1944 law related to the Belgian King to prevent the lifting of these measures.
In December, Mr. Orban told the leaders of the 26 EU countries that Hungary could stop the extension of sanctions on Russia, which will expire on January 31, 2025. The decision requires consensus from all members and if not achieved, the sanctions will expire on January 31.
Prime Minister Orban said he is awaiting the inauguration of US President Donald Trump on January 20 and that if the Trump administration loosens sanctions on Russia, he will ask the EU to do the same.
It is time to lift sanctions and establish non-sanctionary relations with Russia, Prime Minister Orban said on national radio.
In order to prevent Hungary from conceding, the EU is discussing activating a 1944 peacetime decree allowing the Belgian King to prevent the transfer of assets from domestic financial institutions. Currently, about 190 billion euros in Russian state assets are frozen at the Euroclear securities depositorium in Belgium.
Profit from these assets will be used to repay the $50 billion loan to support Ukraine, and the EU considers this a key factor in peace negotiations. If the sanctions are lifted, financial institutions will no longer have a legal basis to detain assets, leading to the possibility of Russia recovering them the following day, according to an EU official.
The Belgian Royal Palace declined to say whether the king would be approached or not, adding that the government was responsible for activating the pre-war decree, although it needed to be signed by the king.
Belgium, along with other EU member states, is doing everything possible to reach an agreement on extending sanctions against Russia. We have reached agreements in the past and we will continue to make efforts to ensure that this is the case, said a Belgian Foreign Ministry spokesperson.
Belgium has long opposed the implementation of national measures regarding seized assets, fearing that this would put Brussels in the face of legal challenges from Russia. The use of special powers would violate the bilateral investment treaty Belgium has signed with Russia, a Belgian official said.
If Prime Minister Orban does not make a concession, the only solution is the national solution, said a senior committee official involved in the preparation process.
Several member states have proposed revoking Hungary's voting rights to promote the extension, but such a drastic move may not ensure the necessary unanimous support from all other countries.
