The European Union may release €6.6 billion from the European Peace Facility (EPF) for Ukraine after a change of government in Hungary.
This was reported by the head of European diplomacy Kaja Kallas.
“We now have a new Hungarian minister, which also means that we are moving forward with the release of €6.6 billion from the European Peace Fund,” she said.
This is money that Hungary has blocked for over two years. Due to Budapestʼs position, EU countries have been unable to agree on new tranches of compensation for member states that supplied weapons to Ukraine through this mechanism.
According to Kallas, today the ministers are also discussing how exactly these funds will be used. She recalled that the original idea of the fund was to reimburse the costs of member states that provided assistance to Ukraine. However, discussions are currently ongoing on whether more funds should be directed directly to new assistance to Ukraine or to reimburse contributions that EU countries have already made.
"We have proposed a compromise option that takes into account both sides," Kallas said, adding that the European Union is already holding consultations with member states.
- Since 2024, Budapest, under the leadership of Viktor Orbán, has vetoed the allocation of about €6.6 billion to Ukraine under the European Peace Facility. Hungary has used this decision as leverage, in particular by demanding that Kyiv resume the transit of Russian oil company “Lukoil”.
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