European Peace Fund
The European Peace Facility is an off-budget instrument of the European Union, established in 2021 to finance joint defence needs and military operations of EU member states. It operates outside the EU budget and is funded by contributions from member states based on their gross national income. Since Russia's full-scale invasion of Ukraine, the facility has become the EU's main channel for military and defence assistance to the Ukrainian Armed Forces.
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Ukraine asks EU to use frozen Russian assets to cover $78 billion 2027 financing gap
Ukraine's Finance Minister Serhiy Marchenko told a donor meeting in Brussels on 29 September that Ukraine needs roughly $78 billion (about €69 billion) in additional financing for 2027 and called on the European Union to use frozen Russian sovereign assets to cover the gap. EU officials and several member states received the request skeptically, with Belgium opposed to any new use of the assets and the European Commission insisting that the priority is disbursing the already agreed €90 billion loan, whose budget tranche is held up pending Ukrainian reforms.
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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.