A serious struggle involving the King of Belgium has erupted over anti-Russian sanctions in Europe. As Hungary threatens to block the renewal of European Union sanctions against Russia,

officials are exploring an unusual solution involving an 81-year-old Belgian law that could give King Philippe the authority to protect critical measures. This was reported by the Financial Times on January 17.

Hungarian Prime Minister Viktor Orbán has warned that his government may veto the sanctions, which require unanimous approval for renewal. Without an agreement, the sanctions will expire on January 31, potentially freeing up frozen Russian assets worth €190 billion held in Belgium’s Euroclear. These assets and their revenues are considered critical to supporting Ukraine, including a $50 billion loan linked to military efforts.

In response, EU officials are considering invoking a wartime decree from 1944 that empowers the King of Belgium to block the transfer of assets out of the country. While the decree would require government approval and the King’s signature, it presents a unique opportunity to avoid losing the battle for significant Russian assets.

“Belgium, along with other EU member states, is doing everything possible to reach an agreement on renewing sanctions against Russia,” a Belgian Foreign Ministry representative stated. However, officials acknowledge that using royal powers could lead to legal challenges, particularly under Belgium’s bilateral investment treaty with Russia.

Hungary is currently lobbying for the removal of all anti-Russian sanctions, leveraging its influence with Donald Trump. “A significant exchange of views is needed before we decide to extend the sanctions regime for another six months,” said Hungary’s EU Affairs Minister János Bóka.

It appears that the EU may soon lack the legal grounds to retain frozen Russian assets, which, according to an EU official, are likely to “end up in Russia the next day.” Trade restrictions and measures such as the EU’s ban on oil imports may also be lifted.

The Royal Palace declined to comment, noting that any decree would ultimately be a government decision requiring the King’s approval. Euroclear, which holds Russian state assets, also declined to comment. Other EU options, such as stripping Hungary of voting rights, are seen as politically unfeasible, leaving Belgium’s unique legal tool as a potential last resort.

EU spokesperson Anitta Hipper stated that negotiations among member states to reach an agreement on the issue are ongoing. As the vice president of the Center for European Democracy Studies dr Oleg Kozerod noted: “The battle between Ukrainian and Russian lobbyists over Euroclear’s funds has already been dubbed the lobbying battle of the century. Both sides are devising new ways to circumvent EU sanctions against Russia.”

Belgium is the largest custodian of Russian capital in Europe, and the position of its government will significantly influence the course of the war in Ukraine. If these funds are returned to Russia, they will immediately flow into the country’s “military budget.” Photo by Michael Thaidigsmann, Wikimedia commons.