Hungary to block European Commission’s offer to give Ukraine profits off frozen Russian assets

The European Commission's proposal to donate to Ukraine profits derived from frozen Russian assets is unlikely to be approved at the EU Council starting today in Brussels. The reason is Hungary's position.

That’s according to a high-ranking European diplomat, who spoke with DW on condition of anonymity, Ukrinform reports.

"The European Commission's proposal to confiscate profits from frozen Russian assets to support Ukraine is unlikely to be approved at the summit of EU leaders, which will begin in Brussels on Thursday, March 21," the diplomat said.

According to the source, there is a common understanding among the majority of EU member states that the seized funds should be used for the purchase of weapons and ammunition for the Armed Forces of Ukraine. "Now Ukraine needs more money for weapons, and, unfortunately, not for recovery. And we strive to do everything to avoid further destruction in Ukraine," the source explained.

The proposal put forward by the European Commission suggests that 90% of the profits derived from frozen Russian assets be used to procure weapons for Ukraine.

However, DW's interlocutor said Hungary opposes the move. Authorities in Budapest believe these funds could be used for anything but weapons for Ukraine.

As reported, on March 21-22, Brussels is hosting an EU Council. One of the main issues on the agenda is continued military aid to Ukraine, strengthening EU security and defense, as well as increasing the capacity of the European defense industry.