Belgium's King may be key to preserving EU sanctions against Russia
.jpg)
As Hungary threatens to block the renewal of European Union sanctions against Russia, officials are exploring an unusual solution that includes invoking an 81-year-old Belgian law that could give King Philippe the authority to safeguard critical measures. This was reported by the Financial Times on Friday.
Hungarian prime minister Viktor Orbán has warned that his government may veto the sanctions, which require unanimous approval from all EU leaders for renewal.
Without an agreement, the sanctions would lapse on 31 January, potentially freeing up frozen Russian assets worth 190 billion euros held at Belgium-based Euroclear. These assets and their profits are considered crucial for supporting Ukraine, including a 50 billion USD loan tied to the war effort.
Wartime decree
In response, EU officials are considering summoning a wartime decree from 1944 that empowers Belgium’s King to block the transfer of assets from the country. While the decree would require government approval and the King’s signature, it represents a rare and significant step.
“Belgium, together with the other EU member states, is doing everything possible to reach an agreement on the renewal of sanctions against Russia,” a spokesperson for Belgium’s Foreign ministry said. However, officials acknowledge that invoking royal powers could lead to legal challenges, particularly under Belgium’s bilateral investment treaty with Russia.
Following suit
Hungary’s position is linked to the inauguration of Donald Trump as US president. Orbán has indicated that if Trump eases US sanctions on Moscow, Hungary would push for the EU to follow suit. “A meaningful exchange should take place before we decide to roll over the sanctions regime for another six months,” said Hungary’s EU Affairs minister, János Bóka.
If the sanctions expire, financial intermediaries would have no legal basis to hold frozen Russian assets, which an EU official described as likely to be “in Russia the next day”. Trade restrictions and measures like the EU’s oil import ban would also end.
"This is not the path anyone wants to take, but if Orbán doesn’t yield, the only solution is a national one"
The Royal Palace has declined to comment on the situation, noting that any decree would ultimately be a government decision requiring the King’s endorsement. Euroclear also declined to comment.
Other EU options, such as stripping Hungary of its voting rights, are seen as politically unfeasible, leaving Belgium’s unique legal tool as a potential last resort. “This is not the path anyone wants to take, but if Orbán doesn’t yield, the only solution is a national one,” said a senior Commission official.
EU spokesperson Anitta Hipper said efforts to secure an agreement among member states wer ongoing.
King Philippe and Hungary's prime minister Viktor Orbán during a royal reception ahead of a special meeting of the European Council in Brussels, 17 April 2024 © PHOTO OLIVIER HOSLET / POOL / AFP
Related news
