Brussels is reportedly split on the issue of using frozen Russian assets to fund the war in Ukraine, with some advocating instead for a joint loan. However, Hungarian Prime Minister Viktor Orbán yesterday told press that the idea of going after Russian assets was already dead.
“This morning, the chairwoman of the committee announced that the committee has backed down and the issue of Russian assets will not even be put on the table,” Prime Minister Viktor Orbán began in an interview with Dániel Deák, senior analyst at the 21st Century Institute, reported Magyar Nemzet yesterday.
“Last night’s background negotiations and struggles led to a result, and I think, if I understand correctly what the chairwoman of the committee said today, that the Russian assets will not be put on the negotiating table tomorrow. This morning, the chairwoman of the committee announced that the committee had backed down,” he told him.
What would remain is the proposed joint loan, with sources telling Politico that discussions would center around a loan deal without Hungary and Slovakia, who both oppose the idea. Both countries say they oppose any continued funding of the war in Ukraine, opting to focus on the current U.S.-led peace talks instead.
However, other portals as of early this morning say the topic of using Russian assets is still very much on the table, with a final decision due today.
According to the same Politico article, “Hungary’s Viktor Orbán is already predicting the assets will not be discussed in Brussels, and that negotiations have shifted to joint loans. Multiple diplomats, however, retorted that Orbán was wrong and that the Russian assets were still ‘the only game in town.'”
The BBC also wrote: “One European government official described being ‘cautiously optimistic, not overly optimistic’ that a deal would be agreed.”
Given the legal entanglements of using these funds, the idea still seems risky. Furthermore, Russia has already sued the clearing house holding the majority of its frozen money in Belgium, Euroclear. Just days ago, Moscow sent a clear message with its suit, seeking $230 billion in damages.
Belgian Prime Minister Bart de Wever has pushed back against tapping these funds, saying, it is not as simple as politicians claim.
“When money owned by another country’s central bank is used by another country, it will have consequences,” he warned.
