Hungary has filed a legal challenge against the European Union, contesting the bloc’s decision to channel profits from frozen Russian central bank assets into military assistance for Ukraine. The lawsuit was formally accepted by the EU Court of Justice on August 25, and has now been referred to the General Court for adjudication.
Budapest’s case targets a 2024 Council decision, and an implementing measure by the European Peace Facility (EPF) in early 2025. Under these decisions, 99.7% of interest income from frozen Russian assets projected to generate roughly €3–5 billion annually is being routed via the EPF to supply Ukraine’s armed forces.
Hungary argues that the EU breached fundamental legal principles by marginalizing its right to veto. The government contends that it was incorrectly excluded from the decision-making process on the basis that it was not a “contributing Member State,” thereby undermining equality among EU members and the democratic functioning of EU institutions.
In its legal filing, Hungary seeks the annulment of both the EPF decision and its associated protocol, and demands reimbursement of legal costs. This move follows Budapest’s long-standing resistance to EU Ukraine-support efforts. Hungary has repeatedly blocked aid packages, including a €50-billion proposal, and previously filed a similar lawsuit in mid-2024 challenging EPF decisions.
Though the case could take years to resolve, potentially involving a written phase, expert opinions, public hearings, and appeals the contested EU funding mechanism remains operational. Ukraine continues receiving aid under the new Ukraine Facility even as legal uncertainty persists.
The litigation underscores deepening tensions between Hungary and the rest of the EU. Hungarian Prime Minister Viktor Orbán, viewed by many as the bloc’s most Kremlin-friendly leader, has frequently clashed with Brussels over sanctions and Ukraine-related policies.
