Hungary has initiated legal proceedings against the European Union, challenging the decision to redirect interest from frozen Russian assets towards supporting Ukraine militarily through the European Peace Facility (EPF).
The European Court of Justice officially accepted the case on August 25, as reported by Kiev Independent.
Budapest is disputing a 2024 EU Council decision, whereby 99.7% of the interest generated from frozen Russian funds (estimated at 3-5 billion euros annually) is allocated to Ukraine. The measure, implemented in February 2025, represents a new mechanism of military support for Kiev.
Hungary argues that the decision was illegal, as the EPF allegedly disregarded its right of veto, considering that Budapest is not deemed a "contributing member state" in this case. The Hungarian government is seeking the annulment of the decision and coverage of legal costs.
The case, currently before the EU Tribunal, could take years before a verdict is reached. In the meantime, the Union continues financial support through the new mechanism.
In June 2024, Hungary also contested another EPF decision regarding support for Ukraine, a case still under review.
To date, the EU and its member states have provided Ukraine with over 186 billion dollars in financial, military, and humanitarian aid, approximately 12.8 billion through the European Peace Facility.
The legal action comes amid escalating tensions between Ukraine and Hungary, particularly after repeated drone attacks by Ukraine on the Russian Druzhba pipeline, which also supplies oil to Hungary.
Meanwhile, Russian oil deliveries to Hungary and Slovakia via the Druzhba pipeline have resumed. The announcement was made on Thursday by the Hungarian oil group MOL and the Slovak Minister of Economy, Denisa Sakova.
However, Hungary's government announced on Thursday the banning of entry into the country and the Schengen area for the commander of the Ukrainian unit that ordered the attack on the Druzhba pipeline, as conveyed by Foreign Minister Peter Szijjarto, reported by Kiev Independent.