European Union foreign policy chief Josep Borrell announced the possibility of unlocking €6.6 billion from the European Peace Facility (EPF) for Ukraine, contingent on recent changes in the Hungarian government. This statement was made ahead of an informal meeting of EU defense ministers in Nicosia.
Borrell highlighted that the appointment of a new Hungarian minister could facilitate progress in releasing the funds, which have been effectively blocked by Hungary for over two years. The Hungarian government’s stance had previously hindered EU member states from agreeing on new compensation payments for countries supplying arms to Ukraine through the EPF.
During the meeting, Borrell noted that ministers would also discuss the allocation of these funds. He reiterated that the original intention of the EPF was to reimburse member states for expenses incurred while providing assistance to Ukraine, emphasizing the need for a fair distribution of financial burdens.
However, discussions are ongoing regarding whether a greater portion of the funds should be directed towards direct aid for Ukraine. Borrell mentioned that a compromise proposal has been put forward, aiming to address the interests of both sides involved.
He stressed the importance of unlocking the €6.6 billion, stating, “This is a very, very important step that we are working on.” Yet, he acknowledged that final timelines remain uncertain as member states must still agree on the new proposal.
Borrell also emphasized that while the EU is considering the need for oversight on procurement and reforms, the primary focus remains on addressing Ukraine’s urgent defense needs. He stated, “They need to defend themselves, and their air defense is paramount.”
Since 2024, Hungary, under Prime Minister Viktor Orbán’s administration, has consistently vetoed the disbursement of approximately €6.6 billion to Ukraine from the EPF. Budapest has used this decision as leverage, notably demanding the resumption of oil transit from the Russian company Lukoil as a condition.
The European Union is poised to potentially unlock €6.6 billion for Ukraine following a change in Hungary's government. Discussions among EU ministers focus on the allocation of these funds, which have been blocked for over two years due to Hungary's previous vetoes.
Source: Radio Free Europe