Brussels: European Union member states have agreed to release €6.6 billion (around $7.5 billion) in military aid for Ukraine from the European Peace Facility, the bloc's foreign policy chief Kaja Kallas announced on Friday, September 25. The funds had been frozen for more than two years because of a veto by Hungary.
How the Money Will Be Used
According to Kallas, €900 million will go to the EU's Military Assistance Mission for Ukraine, which trains Ukrainian troops, and €1 billion will fund new joint procurement of military equipment. The remaining €4.7 billion will reimburse EU member states for military aid they have already provided to Ukraine. Kallas said some countries have already indicated they will pass their share on to Kyiv.
Kallas called the agreement good news for Ukraine and bad news for Russia. She said Moscow's hybrid attacks are aimed at intimidating Europe into scaling back its support for Ukraine, and that Europe was doing the opposite.
What Is the European Peace Facility?
The European Peace Facility is an off-budget EU fund used to finance military assistance to countries outside the bloc. In the case of Ukraine, it has largely been used to partially reimburse member states for weapons and ammunition they donate. Between 2022 and 2025, the EU mobilised around €6.4 billion for Ukraine through the facility, according to the Council of the EU.
Why It Was Blocked
Because decisions under the facility require unanimity, a single member state can stop payments. In May 2023, Hungary, then led by Prime Minister Viktor Orbán, vetoed further disbursements after Ukraine added OTP Bank, Hungary's largest commercial bank, to its list of "international sponsors of war." Hungary's new government lifted the block earlier this year, clearing the way for Friday's agreement.
Why It Matters Now
The release comes at a critical time for Ukraine, which is facing a significant shortfall in its Ministry of Defence budget that could put drone deliveries at risk, according to Euronews.
Sources
Reuters (via South China Morning Post and Arab News), Euronews, Kaja Kallas on X, Council of the EU; report from Brussels by TVP World.
Latest Development
As of September 28, member states have agreed on the terms for releasing the funds. Details on which countries will redirect their reimbursements to Ukraine have not yet been published. This story will be updated as more information becomes available.