EU eyes capital controls to bypass Hungary over Russia sanctions

The European Commission is exploring alternative legal mechanisms to maintain pressure on Moscow if Hungary blocks the renewal of EU economic sanctions due to expire in July.

Brussels is preparing alternative legal tools to sustain pressure on Moscow if Hungary blocks the renewal of EU economic sanctions set to expire in July. The European Commission has informed member states that key measures—such as the freeze on €200 billion in Russian state assets—could be placed on a new legal footing to avoid needing unanimous approval. Capital controls and tariffs are among the options under consideration.

Hungarian Prime Minister Viktor Orbán has previously opposed sanction extensions, and Budapest's stance remains uncertain. EU sanctions require consensus to be renewed every six months, but the Commission is exploring mechanisms that need only a qualified majority. One scenario would let countries like Belgium, where much of the Russian assets are held, take independent steps to prevent repatriation. Trade tools—such as those already used on Russian fertiliser—may also be adapted further. While no major objections were raised by Hungary in recent talks on a new 17th sanctions package, which targets third-country firms aiding Russia, officials remain cautious.

The package is expected to be finalised next week. Separately, the Commission plans to propose new rules on phasing out Russian gas imports by 2027 and introducing tariffs on enriched uranium. It says these would not be sanctions, though some member states have requested legal clarity to avoid future disputes. Commission officials, responding to doubts raised by diplomats, emphasised confidence in their legal teams, calling the concern a matter of trust

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