The Hungarian government, led by Prime Minister Peter Marki-Zay, has initiated a significant policy shift regarding Ukraine by lifting its veto on the European Peace Facility (EPF). This decision marks a departure from the previous administration’s stance and aims to enhance support for Ukraine amidst ongoing conflict.
According to reports, Hungary’s new government has removed its block on decisions related to the EPF, which compensates EU member states for military equipment supplied to Ukraine. A Hungarian representative announced this change during a meeting of the EU’s Political and Security Committee, a development confirmed by multiple European diplomats.
One diplomat noted that the lifting of the veto would serve as a positive reinforcement for EU member states that have provided substantial support to Ukraine. “Now they will finally receive some reimbursement, which will also help distribute the burden more evenly,” the diplomat stated.
The European Peace Facility is a key EU mechanism that reimburses member states for approximately 40% of the costs associated with weapons and ammunition sent to Ukraine from their national arsenals. Hungary’s previous administration, under Viktor Orban, had blocked payments for nearly two years, resulting in unpaid reimbursements accumulating to over €40 billion.
With the veto now lifted, around €6.6 billion could be immediately unlocked for distribution. However, EU countries must still agree on the rules for utilizing these funds and the process for new reimbursements.
Ukraine has already urged its partners to allocate a portion of the unblocked resources for the purchase of additional Patriot air defense systems and related missiles. Ukrainian Foreign Minister Andriy Sybiga has called on EU nations to use the reimbursed funds to procure air defense systems from the United States under the NATO-led program known as the Priority Needs List for Ukraine (PURL).
Hungary's new government has lifted its veto on the European Peace Facility, allowing for the release of significant funds to support Ukraine. This shift is expected to facilitate military reimbursements and enhance defense capabilities amid ongoing conflict.