On Thursday evening, EU leaders reached an agreement in principle to requisition a large part of excess profits from frozen Russian assets and transfer them to Ukraine, The Guardian reports.

The agreement was reached after almost a year of negotiations related to the legal basis for the effective seizure of 190 billion euros held in the Belgian central securities depository Euroclear, News.ro cites.

The agreement was reached after the wording of the text was changed to meet the objections of Hungary, which opposed the use of the money to arm Ukraine.

How the funds will be distributed has yet to be decided, but it is proposed to use 90% for military programs and 10% for reconstruction, with the possibility of redirecting some of the money to EU funding of peacekeeping missions around the world to address Hungary’s concerns.

As Politico reports, Hungary has said it will oppose the European Commission’s plan to use 90% of the proceeds from frozen Russian assets to buy weapons for Ukraine.

“Hungary’s position is that we don’t want to get involved in a war, so we don’t send weapons,” said Balazs Orbán, the right-hand man of Hungarian Prime Minister Viktor Orbán, to whom he does not belong.

According to the European Commission’s proposal, 90% of the proceeds from frozen Russian assets in Europe – worth approximately 3 billion euros per year – will be used to purchase ammunition, and the rest will provide non-military aid to Kyiv.

Balazs Orbán advocated either reducing the military support quota “to zero percent” or ensuring Hungary’s refusal to participate in arms procurement – something that is considered technically difficult.

The move still carries legal risks, with the possibility that the money may have to be returned after the war if Russia pursues legal action.

The Kremlin said on Wednesday that such a move would be a gross violation of international law, but EU diplomats said they all agreed that profits or interest from frozen assets could be used in Ukraine.

The move came after Volodymyr Zelenskyi called on EU leaders to step up support for more air cover to protect eastern cities from Russian bombing, including by releasing frozen assets.

“The aggressor must pay the highest price for war – this is in accordance with both the letter and the spirit of the law,” he told EU leaders in a video speech. He went further, asking EU leaders to take into account only the capital that is in the Belgian bank, News.ro quotes.

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