Putin ally tells CNBC using frozen Russian assets is a 'dead end'

One of Russia's past remaining allies successful the European Union told CNBC helium believes determination is nary mode guardant for proposals to money the rebuilding of Ukraine via frozen Russian assets.

The European Commission – the EU's enforcement limb – is considering utilizing seized Russian assets held successful Europe to supply further fiscal enactment to Ukraine.

Speaking to CNBC arsenic officials arrived astatine the European Council meeting, Hungarian Prime Minister Viktor Orbán said proposals to usage the immobilized assets arsenic a means to assistance Ukraine had been "killed."

"It's [a] dormant end. It's over," helium said. "There is nary capable level of enactment down it."

Orbán is wide seen arsenic Russia's closest state wrong the EU, and has been a vocal professional of plans to usage perchance hundreds of billions of euros of frozen assets to money reparations loans for Kyiv. Hungary isn't unsocial successful having doubts implicit the measures, however.

Belgium, whose enactment is captious fixed that immense amounts of frozen assets prevarication successful the Brussels-based clearing location Euroclear, has expressed interest implicit imaginable ineligible and fiscal risks. Italy and Bulgaria person besides supported Belgium's absorption to the proposals.

For its part, the Kremlin has said specified a determination would be tantamount to justification for war, and Russia's cardinal bank announced last week it was suing Euroclear successful a Moscow tribunal "for betterment of losses caused to the Bank of Russia."

The European Council meeting, owed to reason connected Friday, volition person backing options for reparations loans to Ukraine precocious connected the agenda.

"Without caller further fiscal enactment from the EU and different planetary donors, Ukraine is expected to tally retired of funds aboriginal successful 2026," the European Parliament said successful a briefing connected Wednesday, adding that Hungary had already blocked the enactment to usage the headroom successful the EU fund to supply backing to Kyiv. Decisions connected usage of the EU's ain finances necessitate a unanimous ballot from each 27 subordinate states to beryllium passed.

"If some options projected by the Commission are blocked, a 'coalition of the willing' could beryllium the enactment of past resort," the European Parliament said Wednesday.

Asked up of Thursday's meetings if helium was acting successful Europe oregon Russia's interests by moving to artifact the usage of Russian assets by the EU, Orbán said helium was "just moving for peace."

"I deliberation what we person to bash [is] to marque immoderate steps to peace, not to war," helium said.

Russian and Ukrainian forces are entering their 4th wintertime of warring arsenic bid talks resistance on. Negotiations are expected to continue into this coming weekend, perchance successful Miami, pursuing weeks of talks betwixt delegations from the U.S., Russia, Ukraine and Europe.  

Despite Orbán's instrumentality connected the subject, Kaja Kallas, EU high typical for overseas affairs and information policy, told reporters successful Brussels connected Thursday that the bloc was pushing for bid alongside Ukraine, but that it was "one sided."

"We haven't seen immoderate willingness from the Russian broadside to determination oregon earnestly speech astir peace," she said. "We request to enactment unit connected Russia, truthful that they spell from pretending to negociate to really coming to the array to negotiate."

Unlike Orbán, she struck an optimistic code connected pushing the proposals astir the reparations indebtedness and frozen assets through.

"The proposals we are moving connected are addressing Belgium's concerns," she said. "The issues that Belgium has raised person been addressed, truthful I anticipation we get this implicit the finishing line. Putin is banking connected america to fail, truthful we shouldn't springiness him that."

A spokesperson for the Kremlin did not respond to CNBC's petition for comment.