EU court dismisses Hungarian bid to block frozen Russian asset aid for Ukraine

The EU's General Court ruled it lacks jurisdiction over decisions relating to the bloc's Common Foreign and Security Policy. The case comes after Budapest's new government, unlike its predecessor, moved this week to expel 10 Russian diplomats. The European Union's General Court has dismissed a lawsuit brought by the previous Hungarian government that sought to block billions of euros in aid to Ukraine funded by frozen Russian assets. Hungary, under the previous government of Viktor Orbán, turned to the European Court of Justice last year to annul a Council decision channelling interest payments from frozen Russian central bank assets to Ukraine via the European Peace Facility (EPF), the EU's principal military aid instrument. The Orbán government argued that the EPF had breached EU law by disregarding its veto on the grounds that it was not a "contributing member state". Its court filing said the principles of equality between member states and of the EU's democratic functioning had been infringed, as a member state had been "unjustifiably and without a legal basis" denied its right to vote. In a press release, the Court said it had dismissed the action "on the ground that it does not fall within the jurisdiction of the EU judiciary", finding that the contested decision constituted a strategic choice under the bloc's Common Foreign and Security Policy – an area largely shielded from judicial review. Between 2022 and 2024, the EU mobilised €6.1 billion under the European Peace Facility to address Ukraine's pressing military and defence needs. In 2024, the EU decided to increase the European Peace Facility's financial ceiling by €5 billion by establishing a dedicated Ukraine Assistance Fund. This brings the total financial support allocated via the European Peace Facility to €11.1 billion. Hungary's previous government, led by Orbán, maintained close ties with Moscow and had a long record of blocking EU support for Kyiv, straining relations with several fellow member states. The political backdrop has since shifted. Following April's parliamentary elections, Hungary's new government overhauled the country's foreign policy doctrine, now identifying Russia as a threat. On Tuesday, Budapest expelled ten Russian diplomats over what it called "unacceptable activities", a move that drew swift condemnation from Moscow.