Hungarian Prime Minister Viktor Orbán on Thursday openly rejected the EU’s plans to tap into frozen Russian state assets to support a reparations loan for Ukraine, declaring the proposal politically dead as EU leaders gathered in Brussels for a decisive summit.
Speaking to reporters inside the European Council (EC) building ahead of the meeting, Orbán said opposition among member states had already reached the threshold needed to block the plan.
“[The reparations loan] I think it’s killed. It’s dead end. It’s over,” Orbán said. “Last night I saw that there are enough opposing countries for the amount of votes to come together – what is here called a blocking minority. So I think this is a dead issue.”
“There is no chance that there will be a majority,” Orbán said, adding that the entire issue would now have to be reconsidered.
Asked about possible further negotiations, Orbán smiled as he said, “There may still be last-minute fights, but I think this is the end of it.”
Frozen assets at the heart of the dispute
The disputed proposal centers on using principal of frozen Russian central bank assets held in Europe to support Ukraine through a multibillion-euro loan covering 2026-27. Around €210 billion ($246 billion) in Russian state assets are immobilized in the EU, the bulk of them at the Belgian clearing house Euroclear.
Supporters argue the plan would help Ukraine close a looming budget gap without burdening European taxpayers, while ensuring Russia ultimately pays for the damage caused by its invasion. Critics warn of legal, financial and geopolitical risks.
Orbán said he had heard no credible alternative ready to replace the plan. “I have spoken to people who are close to the fire, but no one has ever said that a new one will come instead of the concept of the dead,” he said.
Hungary rules out participation
Orbán stated that Budapest would also reject financing Ukraine through common EU borrowing if it went beyond those legal limits. “I would not agree with it,” he said, adding that Hungary should not take steps that, in his words, amount to financing war rather than peace.
Orbán said Hungary could not support the plan under any circumstances, citing constitutional limits on the government’s authority.
“The constitutional situation in Hungary is very clear,” he said. “There is a section in the constitution that says the Hungarian government can only act with parliamentary authorization to make a commitment to Hungary. I do not have such an authorization.”
He argued that no Hungarian government could accept a mechanism that, in his view, would amount to taxing Hungary through an EU-level agreement.
Energy policy adds another rift between Brussels, Budapest
Orbán also linked the asset debate to broader disputes over EU policy toward Russia, including proposals discussed in the European Parliament to ban Russian gas and oil imports entirely.
The move comes as part of a broader EU regulatory push to end long-term Russian gas contracts by Nov. 1, 2027 – a strategy aimed at reducing the bloc’s dependence on Moscow after years of what EU officials have described as Russia’s “weaponization” of energy supplies.
Hungary, however, has said it plans to launch an immediate legal challenge against the decision, arguing that the phase-out would impose disproportionate economic costs on certain member states.
Orbán warned that such measures would have severe domestic consequences for Hungary.“If this happens, the budget cannot be protected,” he said, arguing that household energy costs could double or even triple, directly harming families and destabilizing national finances.
“We should not interfere”
Framing the war as a conflict between two external parties, Orbán argued the EU should avoid actions that, in his view, deepen involvement. He repeatedly avoided any reference to Russia’s role as an invading power or to documented attacks on civilians.
“The basic situation is the following: There are two countries that are at war with each other – Russia and Ukraine,” he said. “We, the EU, are here. And the plan is to take away the money of one warring party and give it to the other warring party.”
He said such steps amounted to “marching into the war.”
“We should not interfere in this war. We have to stay out of it, and we have to work for peace,” he added.
“To give money means war,” Orbán said, referring to the reparations loan.
EU split laid bare
Orbán openly aligned himself with Belgian Prime Minister Bart De Wever, whose government has raised legal concerns about exposing Belgium – home to Euroclear – to retaliation or lawsuits from Russia.
“The whole idea was a stupid one – to take away the money of somebody,” Orbán said. “The Belgian prime minister is right. We should not do that.”
The remarks highlight the widening rift within the EU as leaders seek agreement on financing for Ukraine ahead of a critical year. Belgium is not alone in its opposition: Italy, Bulgaria and Malta have also opposed using frozen Russian assets to fund Ukraine, further complicating efforts to build consensus.
Ukraine faces a projected budget shortfall exceeding €70 billion ($82 billion) next year if external funding falters, according to Ukrainian officials.
Despite Orbán’s stance, other EU leaders have warned that failure to act would severely damage the bloc’s credibility. The summit is expected to continue late into Thursday as negotiations over frozen assets, alternative financing options and broader Ukraine support remain unresolved.