Hungary’s veto sparks EU push to seize €210bn in frozen Russian assets
On Friday, Hungary vetoed a €90bn eurobond scheme at an EU ambassadors’ meeting—killing Europe’s backup plan for funding Ukraine. By Sunday, seven EU countries were demanding that the bloc take a bolder path instead: seize €210 billion in frozen Russian assets outright.
The leaders of Finland, Estonia, Ireland, Latvia, Lithuania, Poland, and Sweden sent an urgent letter to European Commission President Ursula von der Leyen and European Council President António Costa.
The reparations loan, they wrote, is “the most financially feasible and politically realistic solution” and addresses “the fundamental principle of Ukraine’s right to compensation for damages caused by the aggression.”
“Time is of the essence,” the letter states. They want a decision at the December 18-19 summit.
Hungary’s veto eliminated the financing option that required unanimity. What remains is the more politically fraught choice—converting frozen Russian assets into a reparations loan that bypasses Budapest entirely.
Belgium holds the key
Most of the €210bn sits at Euroclear in Brussels. That makes Belgian Prime Minister Bart De Wever the man who can unlock it—or keep it frozen.
His concerns: legal liability if Russia eventually sues, risk-sharing, and potential Russian retaliation. When he raises these issues in EU meetings, De Wever has complained that “everyone just looks at their shoes or the ceiling.”
Germany has offered to backstop 25% of any losses—roughly €52bn—but Belgium wants broader guarantees from all 27 member states. Chancellor Friedrich Merz flew to Brussels Friday night, canceling a trip to Norway, to make his case in person.
“I do not want to persuade him,” Merz said. “I want to convince him.”
In a 3 December op-ed for Frankfurter Allgemeine Zeitung, Merz framed the choice as a test of European sovereignty: “If we are serious about this, we cannot leave it to non-European states to decide what happens to the financial resources of an aggressor state that have been lawfully frozen within the jurisdiction of our own rule-of-law and in our own currency.”
Why did seven countries go public?
The joint letter wasn’t just about Ukraine—it was about Europe’s own security. “Russia’s imperialist ambitions threaten the security of Europe beyond Ukraine,” the signatories wrote.
“By reaching a decision on the Reparations Loan at the European Council in December we have the opportunity of putting Ukraine in a stronger position to defend itself and a better position to negotiate a just and lasting peace.”
Finnish PM Petteri Orpo has been among the most forceful advocates. “Supporting Ukraine is not only our moral obligation, it is a direct investment in European security,” he said as early as September. “The only reasonable solution is to use Russian frozen assets.”
Ireland’s Taoiseach Micheál Martin added his signature — a notable commitment from a traditionally neutral EU member now aligning with the Baltic-Nordic push.
Estonian Foreign Ministry Chancellor Jonatan Vseviov, in an interview with ERR, captured the moment: “We’ve been talking about this for almost four years. We’ve never been this close. But it’s not done until the decisions are actually made.”
Ten days to decide
EU leaders meet December 18-19 in Brussels. Without agreement, Ukraine’s reserves risk running dry—and Europe’s leverage in any peace negotiation shrinks.
Hungary tried to block Europe’s path. It may have cleared a bigger one instead. The question now is whether Belgium bets on European solidarity—or on Russian good behavior.
