Brussels is preparing to use capital controls and tariffs against Russia in case Hungary blocks the extension of the EU’s economic sanctions imposed on Moscow in response to its war in Ukraine.
The European Commission has told national capitals that a large portion of the sanctions, including €200bn in frozen Russian state assets, could be moved on to a different legal basis to circumvent Budapest’s veto, five officials briefed on the ongoing discussions told the Financial Times.
The preparations come as the EU has vowed to maintain economic pressure on Moscow amid diplomatic efforts to force Russia to agree to a proposed ceasefire and direct peace negotiations with Ukraine.
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