June 24 (Reuters) - The European Union has found a way

to use proceeds from frozen Russian assets to buy arms for

Ukraine despite hold-ups from Hungary, EU foreign policy chief

Josep Borrell said on Monday.

EU governments agreed in May to use profits from the assets

frozen inside the bloc to help Ukraine, with 90% of funds

earmarked for military aid. But Hungary has been holding up

approval of the necessary legal measures, diplomats say.

Hungary maintains warmer relations with Moscow than any

other EU country. It does not give arms to Ukraine and Hungarian

Prime Minister Viktor Orban has criticised other EU and NATO

members for doing so, saying they are fueling the war.

With a first tranche of proceeds worth 1.4 billion euros

($1.5 billion) due next week, EU officials had been scrambling

for a way to allow the funds to be used immediately to help

Ukraine defend itself from Russia's invasion.

Borrell said EU officials had now found a way to approve the

measures without needing the consent of any member country that

abstained from the original decision.

"We have a legal procedure in order to avoid any kind of

blockage," Borrell said before a meeting of EU foreign affairs

ministers in Luxembourg.

"Since Hungary didn't participate in the decision, it is not

necessary that they ... participate in the implementation," he

told reporters.

"Now we have to implement this decision. The money will come

next week. And I cannot have this money in my pocket - this

money is for military support to Ukraine."

Borrell said he hoped the ministers would endorse the plan

at their meeting.

Hungarian Foreign Minister Peter Szijjarto did not speak to

reporters on his way into the meeting.

The EU's plan for the immediate use of profits from frozen

Russian assets is separate from a decision by G7 leaders this

month to use future proceeds to fund $50 billion in loans to

Ukraine.

($1 = 0.9336 euros)