EU member states agree on how to release €6.6 billion from European Peace Fund for Ukraine
EU member states agreed on conditions for releasing €6.6 billion from the European Peace Fund for Ukraine, ending a freeze imposed since spring 2023 by Hungary's veto. The announcement was made on 25 September by EU High Representative for Foreign Affairs and Security Policy Kaja Kallas, who called the deal "good news for Ukraine and bad news for Russia." The deal still requires formal adoption by EU defense ministers.
Key points
- EU member states agreed on conditions for releasing €6.6 billion from the European Peace Fund for Ukraine, ending a freeze imposed by Hungary's veto since spring 2023.
- EU High Representative Kaja Kallas announced the agreement on 25 September via X.
- €900 million of the package is allocated to the EU Military Assistance Mission for Ukraine (EUMAM Ukraine).
- €1 billion will go to joint procurement of new military equipment.
- €4.7 billion will reimburse EU member states for military aid already provided to Ukraine; Sweden and Germany say they will redirect their shares to further support for Ukraine.
- The agreement is a political understanding; EU defense ministers are expected to take a final decision at a Council of the EU meeting on Monday, 28 September.
- Hungary's new Prime Minister Péter Magyar, who defeated Viktor Orbán in elections, lifted the veto as a campaign promise.
Why it matters
The release of €6.6 billion from the European Peace Fund removes a major bottleneck in EU military support for Ukraine, more than two years after Hungary's veto froze the funding. It is tied directly to Ukraine's near-term defense financing needs, including a reported Ministry of Defense budget deficit of $27 billion that threatens drone supplies. The agreement also signals continued EU willingness to scale up defense assistance to Ukraine amid Russian hybrid pressure.
What happened
EU member states agreed on conditions for releasing €6.6 billion from the European Peace Fund for Ukraine. The fund had been blocked since spring 2023 by Hungary's veto under then-Prime Minister Viktor Orbán; the veto was lifted after Péter Magyar's government came to power. Of the €6.6 billion, €900 million is allocated to the EU Military Assistance Mission for Ukraine (EUMAM Ukraine), €1 billion to joint procurement of new military equipment, and €4.7 billion to reimbursing EU member states for military aid already provided to Ukraine. Sweden and Germany are among the countries that have said they will redirect their reimbursement shares back to Ukraine. EU High Representative for Foreign Affairs and Security Policy Kaja Kallas announced the agreement on 25 September via X, calling it "good news for Ukraine and bad news for Russia." The agreement is a political understanding; EU defense ministers are expected to take the final decision at a Council of the EU meeting on Monday, 28 September.
How Ukrainian sources describe it
Ukrainian-language coverage frames the deal as a major breakthrough in EU military support for Ukraine, using recurring terms such as "unblocked," "agreed," and "allocated for defense." Reporting foregrounds Kaja Kallas's characterization of the decision as "bad news for Russia" and "good news for Ukraine," and highlights the role of Hungary's change of government under Péter Magyar in enabling the agreement. Ukrainian outlets tie the release directly to Ukraine's defense financing situation, including the reported Ministry of Defense budget deficit and ongoing drone procurement needs.
How international sources describe it
The single non-Ukrainian-language source in the set is a Hong Kong-based English-language outlet, which reports the same underlying decision but headlines the amount in US dollars ("US$7.5 billion") rather than the €6.6 billion figure used by all other sources.
Where reporting differs
One article's headline frames the package as "US$7.5 billion," while all other sources describe it as €6.6 billion from the European Peace Fund. Separately, Germany proposed that the full €6.6 billion unblocked by Hungary be transferred directly to Ukraine, but not all EU member states supported this; in June, Poland opposed Germany's proposal and sought full reimbursement of its approximately €450 million in aid provided through the fund.
Background
The European Peace Fund (EPF) is an off-budget EU instrument worth €17 billion, created in March 2021 to finance military and defense assistance to partner countries; it is funded by contributions from EU member states proportional to their GDP. After Russia's full-scale invasion of Ukraine in February 2022, the EPF was used for the first time to fund lethal weapons deliveries to a third country under attack. Payments require unanimous approval of all EU member states, which is how Hungary's veto blocked Ukraine-related tranches from spring 2023. Hungary's new Prime Minister Péter Magyar, who defeated Viktor Orbán in elections, lifted the veto as a campaign promise. Separately, on 18 September the European Commission allocated €3.3 billion to Ukraine for the purchase of drones and missiles. Ukraine faces a reported Ministry of Defense budget deficit of $27 billion that could threaten drone supplies, and the European Commission and IMF are in talks with the Ukrainian government on a possible resolution.