The General Court of the Court of Justice of the European Union on Wednesday, 9 September 2026, dismissed Hungary's legal challenge against the use of profits generated by frozen Russian assets to support Ukraine's military needs. The court held that it had no jurisdiction to review the decision because it involved political and strategic choices under the EU's common foreign and security policy (CFSP).

The case originated with the then-Orbán government, which filed the challenge in 2024. It targeted a June 2024 decision by the European Peace Facility (EPF) committee to allocate the first instalment of extraordinary revenues generated by immobilised Russian assets to the Ukrainian Armed Forces.

Hungary subsequently exercised its veto, effectively freezing use of the EPF until last June, when the new government led by Péter Magyar lifted the veto.

Although the litigation was initiated under a different government, the case could still have raised legal hurdles for the use of the EPF. The judgment, in the words of one EU diplomat, "gets one risk out of the way" for member states negotiating the distribution of further EPF funds for Ukraine.

What the ruling means for practitioners

The decision confirms the narrow scope of judicial review over CFSP instruments financing military assistance: acts falling within political and strategic decision-making under the common foreign and security policy remain outside the General Court's jurisdiction. Counsel advising member states, EU institutions, or beneficiaries of EPF-related funding now face one fewer avenue for challenging such allocations in Luxembourg. The practical effect is that disputes over EPF disbursements will be settled in the Council rather than the courtroom — leaving political negotiation, not litigation, as the operative lever.

Negotiations continue

Further disbursements from the EPF remain held up amid negotiations among member states over the reimbursement mechanism. A second EU diplomat said member states are waiting on France and Germany to agree on a position.

The funds, originally intended entirely to reimburse countries that contribute to Ukraine's defence with their own military assets, are now also being considered for direct support to Ukraine. The split between reimbursements and direct support is the main point of contention; discussions on the topic began at the July meeting of EU defence ministers.

"We know that the EPF that has been blocked was €6.6 billion, but the question, and right now we have the discussion, is how much goes back to the Member States and how much of it also goes to Ukraine," EU High Representative Kaja Kallas said in Wicklow on 1 September. "So, I cannot mention any concrete number."