Hungary Warns EU Seizure of Russian Assets Could Undermine Trust in the Euro

Hungarian Prime Minister Viktor Orbán has warned that plans by the European Union to seize frozen Russian assets could erode global confidence in the euro and discourage countries from holding their reserves in the European currency. Orbán’s comments come amid growing pressure within the EU, led by European Commission President Ursula von der Leyen, to confiscate Russian state assets immobilised since Moscow’s invasion of Ukraine and use them to support Kyiv’s reconstruction.

Speaking on the issue, Orbán said he was “completely certain” that Russia would succeed in legal challenges against any asset seizure, arguing that such a move would violate international law and property rights. He cautioned that the legal and financial fallout could be severe, particularly for Belgium, where a large share of the frozen Russian assets is held through the Euroclear financial services company. Hungary has consistently opposed measures it views as escalating the conflict or exposing the EU to long-term economic and legal risks.

Since the start of the Ukraine war in 2022, Western nations have frozen roughly €300 billion in Russian central bank assets, most of them located in Europe. While the EU has already approved the use of interest generated from those assets to support Ukraine, full confiscation remains highly controversial. Critics warn it could set a precedent that weakens trust in Western financial systems, while supporters argue it is a necessary step to make Russia pay for the damage caused by the war.

The debate highlights deep divisions within the EU over how far to go in economically confronting Moscow while safeguarding the credibility of the euro and Europe’s financial institutions.