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EU Court dismisses Hungary's challenge over frozen Russian assets for Ukraine
The EU Court of Justice has dismissed a lawsuit filed by Hungary challenging the decision to use extraordinary profits from frozen Russian central bank assets to support Ukraine. The court ruled that it lacks the jurisdiction to review the matter, stating that the decision falls under the scope of the EU's Common Foreign and Security Policy.
In May 2024, the EU Council established rules for allocating these profits to the European Peace Facility (EPF). While Hungary supported the initial decision to create the mechanism, it abstained from the subsequent vote regarding the distribution of funds. This constructive abstention resulted in Hungary being excluded from the final voting process on the allocation of the first tranche of funds.
The disputed funds, which include an initial installment of approximately 1.4 billion euros, are intended for Ukrainian military aid and reconstruction. Most of the approximately 210 billion euros in frozen Russian assets are held at the Euroclear depository in Belgium, with annual profits from these assets estimated to provide between 2.5 and 3 billion euros in net funding for Kyiv.
Entities
Euroclear · European Peace Facility · European Union Court of Justice · Hungary · Russian Central Bank · Ukraine
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Profits from frozen assets generate between 2.5 and 3 billion euros in annual net funding for Kyiv. www.actualno.com
- [● 4 SOURCES] The court ruled the case inadmissible because it falls under the EU's Common Foreign and Security Policy. www.actualno.com · www.forum24.cz · www.klubradio.hu · hvg.hu
- [● 4 SOURCES] The EU Court dismissed Hungary's lawsuit regarding the use of frozen Russian asset profits for Ukraine. www.actualno.com · www.forum24.cz · www.klubradio.hu · hvg.hu
- [● 3 SOURCES] Hungary abstained from the vote on the distribution of these funds, which led to its exclusion from subsequent voting. www.forum24.cz · www.klubradio.hu · hvg.hu
- [○ 1 SOURCE] The first tranche of funds, approximately 1.4 billion euros, is intended for Ukrainian defense and recovery. www.actualno.com
- [● 3 SOURCES] The European Peace Facility (EPF) was established in 2021 to fund EU foreign and security policy actions. www.forum24.cz · www.klubradio.hu · hvg.hu
- [○ 1 SOURCE] Most frozen Russian central bank assets, totaling about 210 billion euros, are held at Euroclear in Belgium. www.actualno.com
- [● 3 SOURCES] In May 2024, the Council adopted rules for using extraordinary profits from frozen Russian assets to support Ukraine. www.forum24.cz · www.klubradio.hu · hvg.hu