The European Union (EU) is considering using World War II law to defend sanctions against Russia if member state Hungary breaks consensus, the Financial Times reported.
As Hungarian Prime Minister Viktor Orban threatens to veto the extension of EU sanctions against Russia, European officials are considering contingency measures, including invoking a 1944 law related to the Belgian king to block the lifting of the measures.
In December, Mr. Orban told the leaders of the 26 EU countries that Hungary could block the extension of sanctions against Russia, which are due to expire on January 31, 2025. The decision requires consensus from all members, and if not, the sanctions will expire on January 31.
Prime Minister Orban said he is waiting for US President Donald Trump to take office on January 20 and if the Trump administration eases sanctions on Russia, he will ask the EU to do the same.
“It is time to drop the sanctions and establish a non-sanctions relationship with Russia,” Prime Minister Orban said on national radio.
In case Hungary does not yield, the EU is discussing invoking a 1944 wartime decree that allowed the Belgian king to block the transfer of assets from domestic financial institutions. Currently, about 190 billion euros in Russian state assets are frozen at the Euroclear securities depository in Belgium.
The profits from the assets are being used to repay a $50 billion loan to Ukraine, which the EU sees as a key element in peace talks. If sanctions are lifted, financial institutions will no longer have a legal basis to hold the assets, leaving Russia with the possibility of repossessing them the next day, according to an EU official.
The Belgian Royal Palace declined to say whether the king had been approached, adding that responsibility for activating the wartime decree rested with the government, although it needed to be signed by the king.
“Belgium, together with other EU member states, is doing everything possible to reach an agreement on the extension of sanctions against Russia. We have been able to reach an agreement in the past and we will continue to work to ensure that this time too,” a spokesman for the Belgian Foreign Ministry said.
Belgium has long resisted taking national measures on confiscated assets, fearing that this would open Brussels up to legal challenges from Russia. According to a Belgian official, using special powers would violate the bilateral investment treaty Belgium has with Russia.
“If Prime Minister Orban does not give in, the only solution is a national solution,” said a senior commission official involved in the preparations.
Some member states have proposed stripping Hungary of its voting rights to push for an extension, but such a drastic move would likely fail to secure the unanimous support needed from all other countries.
