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The European Union's General Court dismisses Hungary's lawsuit regarding the use of frozen Russian assets to fund Ukraine's defense.

The European Union's General Court dismissed a lawsuit filed by the previous Hungarian government seeking to block billions of euros in aid to Ukraine funded by interest payments from frozen Russian central bank assets. Hungary argued that the European Peace Facility breached EU law by ignoring its veto, claiming the bloc denied its right to vote as a non-contributing member state. The Court ruled that the action did not fall within its jurisdiction, characterizing the decision as a strategic choice under the Common Foreign and Security Policy. Between 2022 and 2024, the EU mobilized €6.1 billion under the European Peace Facility to address Ukraine's military needs. In 2024, the EU increased the financial ceiling by €5 billion, bringing the total support to €11.1 billion. Separately, the Parliamentary Assembly of the Council of Europe approved a mechanism to use frozen Russian state assets to pay compensation awarded to Ukraine under Strasbourg Court rulings. This proposal would allow the principal assets to be used for reparations rather than just the income generated by them. Additionally, 122 members of the European Parliament sent an open letter to EU leaders calling for the urgent use of the €200 billion in Russian assets to help Ukraine, suggesting a new EU instrument act as a custodian to share legal risks.

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