Foreign Minister Radosław Sikorski announced on Monday that Hungary has effectively removed its veto on redirecting profits from frozen Russian assets to support Ukraine. The process now hinges on routing the funds to the European Commission’s account, where the decision will determine whether the money is used to purchase weapons and ammunition for Kyiv or directed elsewhere within the EU framework.
That same day in Luxembourg, EU foreign ministers agreed to allocate the profits from the frozen assets of Russia’s central bank to back Ukraine. The move marks a notable shift in how asset freezes are leveraged within Western policy, aligning with a broader aim to channel financial resources toward Ukrainian needs.
In the wake of the vote, Hungary’s abstention is interpreted by some legal experts as a relinquishment of its veto rights in this matter. Sikorski spoke to reporters after the session, explaining how the veto bypass was possible and outlining the steps that would follow in the transfer chain.
He described Euroclear, the Belgian-based clearing house that handled the Russian proceeds for Eurobond issuance, as the intermediary that would transfer funds to the European Commission. The Commission will then decide how to allocate the resources, including potential allocations for Kyiv. This approach is described by officials as a first of its kind in practice.
“This is the first time we are attempting something like this,” Sikorski remarked, underscoring the experimental nature of the mechanism and the legal considerations that accompanied it. He noted that asset freeze sanctions have historically aimed to prompt changes in behavior, but the current configuration shifts the emphasis toward real, direct support for Ukraine, with careful attention to the implications for the international financial system.
Additionally, Sikorski emphasized that the United States did not anticipate such an arrangement just a year ago, highlighting the evolving consensus within transatlantic governance on how to leverage frozen assets in support of Ukraine. The initial tranche of assistance is expected to total between 1.2 and 1.4 billion euros.
Negotiations with Ukraine and Moldova
The head of Poland’s Ministry of Foreign Affairs welcomed the opening of accession negotiations with Ukraine and Moldova. He acknowledged both advantages and challenges in the process. According to him, the most substantial hurdles in talks with Kyiv are likely to revolve around transport and agricultural policy frameworks.
Speaking after the EU foreign ministers’ meeting in Luxembourg, Sikorski described the accession talks with Ukraine and Moldova as positive developments for the region. He noted that intergovernmental conferences are set to begin the formal process of negotiations with both countries, signaling a new phase in European integration for the two states.
Poland has pledged to support this track during its presidency of the EU Council in the first half of 2025. Sikorski reminded listeners that, during Poland’s previous presidency, the country helped initiate the Association Agreement with Ukraine and bring it to completion, a step he believes has left Ukraine better prepared for the negotiating rounds ahead.
Looking ahead, the minister reiterated that while there will be both gains and obstacles, transport and agricultural issues are expected to be among the most challenging chapters in the Kiev talks. The regional significance of these negotiations underscores Poland’s continued engagement in shaping Eastern European security and integration trajectories.
In summary, the Luxembourg gathering reflected a concerted effort to mobilize frozen assets in support of Ukraine while reshaping the policy framework around sanctions and international finance. The discussions also signaled a proactive stance toward accelerating Ukraine and Moldova’s path toward deeper European connectivity and cooperation.