Hungary sues EU over frozen Russian assets being used to provide Ukraine aid

Hungary's government has sued the European Union over a decision to grant billions of euros of aid to Ukraine from frozen Russian assets.

The lawsuit, filed against the European Peace Facility (EPF), was originally brought before the EU Court of Justice, but has since been referred to the General Court.

The Council decided last year to give 99.7% of interest payments from frozen Russian central bank assets to Ukraine via the EPF, a financial programme which facilitates military aid to allied countries.

Ukraine receives between €3–5 billion every year through the EPF programme.

Hungary's government, headed by Viktor Orbán, filed a legal complaint against the move in May and the European Court of Justice formally accepted it on Monday, publishing the complaint in the Official Journal of the European Union.

Hungary argues that the EPF breached EU law by ignoring its veto on the grounds that it was not a "contributing Member State."

"As a result, the principle of equality between Member States and the principle of the democratic functioning of the European Union were infringed because a Member State was deprived, unjustifiably and without a legal basis, of its right to vote," the court filing says.

The case could set a precedent by protecting the veto power, Hungarian media reported, but it may take years for the court to reach a verdict.

The EPF has already paid more than €11 billion in military aid to Ukraine and that funding could continue via the Ukraine Facility instrument.

Hungary's government, which maintains warm relations with Russia, has a history of regularly blocking EU support for Ukraine, which has strained relations between Budapest and several other EU countries.