Estonia: Blocking sanctions by Orban will return frozen assets to Putin as a 'reward'.

Sanctions may affect Hungary's financial support from the 'G7' and the European Union

Estonian Foreign Minister Margus Tsahkna warns that Hungary may obstruct the continuation of sanctions against Russia, which will have serious financial consequences for the 'G7' and the European Union. Ukraine received multi-billion loans backed by the profits from frozen Russian assets. If sanctions against Russia are not extended, these assets will become available to Russia, which may lead to the loss of guarantees on the loan. The central bank will transfer assets to Russia. Most of the frozen Russian assets are held in accounts with the financial intermediary Euroclear in Belgium.

Estonia supports the full confiscation of Russian assets by G7 countries, rather than just their freezing, as the simplest and most straightforward solution. However, the foreign minister noted that negotiations with Hungary should continue, as Prime Minister Viktor Orban depends on EU funding. The European Commission is already considering a backup plan in case sanctions are not extended, but most legal alternatives have their disadvantages.