# EU legal rulings on Russian assets and sanctions > Live situation record from CLSTR: https://clstr.news/situations/eu-legal-rulings-on-russian-assets-and-sanctions > Updated: 2026-09-09T09:07:53.000Z. Sources: 7. Developments: 2. Legal proceedings within the European Union have addressed various aspects of sanctions and the management of Russian-linked assets. The Court of Justice of the European Union (CJEU) ruled that the political nature of the Russian system is not sufficient evidence to justify freezing assets of companies linked to sanctioned individuals. In a case involving the Lithuanian electricity supplier Inter Rao Lietuva, the court determined that the autocratic nature of the Russian presidency does not constitute “an objective and sufficiently solid basis” to prove specific control over a company without concrete evidence. Separately, the General Court of the European Union dismissed a lawsuit from Hungary regarding the use of extraordinary profits from frozen Russian central bank assets to support Ukraine. The court ruled it lacked jurisdiction, as the decision falls under the EU’s Common Foreign and Security Policy. This decision allows for the continued distribution of funds, derived from approximately 210 billion euros in assets held at the Euroclear depository, to support Ukrainian defense and reconstruction. Recent developments clarify that the disputed funds include an initial installment of approximately 1.4 billion euros intended for Ukrainian military aid. While Hungary supported the initial creation of the mechanism to allocate profits to the European Peace Facility (EPF), it abstained from the subsequent vote regarding fund distribution. This constructive abstention resulted in Hungary being excluded from the final voting process for the allocation of the first tranche of funds. Annual profits from the frozen assets are estimated to provide between 2.5 and 3 billion euros in net funding for Kyiv. ## Claims - The EU Court dismissed Hungary's lawsuit regarding the use of frozen Russian asset profits for Ukraine. (corroborated by 4 sources) - The European Peace Facility (EPF) was established in 2021 to fund EU foreign and security policy actions. (corroborated by 3 sources) - In May 2024, the Council adopted rules for using extraordinary profits from frozen Russian assets to support Ukraine. (corroborated by 3 sources) - Hungary abstained from the vote on the distribution of these funds, which led to its exclusion from subsequent voting. (corroborated by 3 sources) - The first tranche of funds, approximately 1.4 billion euros, is intended for Ukrainian defense and recovery. (single source) - Most frozen Russian central bank assets, totaling about 210 billion euros, are held at Euroclear in Belgium. (single source) - Profits from frozen assets generate between 2.5 and 3 billion euros in annual net funding for Kyiv. (single source) ## Timeline ### 2026-09-09: EU Court dismisses Hungary's challenge over frozen Russian assets for Ukraine The EU Court of Justice dismissed Hungary's legal challenge against using profits from frozen Russian assets to fund Ukraine, ruling the decision falls under foreign and security policy jurisdiction. 5 sources. https://clstr.news/cluster/eu-court-rejects-hungarys-challenge-over-frozen-russian-assets-for-ukraine ### 2026-09-03: EU court limits asset freezes on Russia-linked firms The EU's top court ruled that Russia's political structure alone is not enough evidence to freeze assets of companies linked to sanctioned individuals, requiring objective proof of control. 2 sources. https://clstr.news/cluster/eu-court-limits-asset-freezes-on-russia-linked-firms --- Cite as: EU legal rulings on Russian assets and sanctions. CLSTR, https://clstr.news/situations/eu-legal-rulings-on-russian-assets-and-sanctions