Diplomats say a compromise would divide the frozen EPF money between new joint arms purchases, EUMAM mission support and reimbursements for past member state deliveries.
The European Union is close to a deal to unblock 6.6 billion euros from the European Peace Facility (EPF) for Ukraine. For more than two years the funds were frozen because of Hungary’s stance; details of the talks were disclosed by diplomatic sources and EU government officials.
Under the compromise plan, the funds would be allocated across three directions: about 1 billion euros would go to new military assistance through the joint weapons procurement mechanism, about 900 million euros to the EUMAM Ukraine mission, and the remainder would partly offset the costs borne by member states for weapons and equipment they had previously provided to Ukraine.
Of the 6.6 billion euros, 4.7 billion is only compensation for deliveries that have already been made. This is not new money for Ukraine
– diplomat
Other interlocutors note that, considering the more than 40 billion in military aid the EU member states have already provided to Ukraine, the amount itself is not substantial, and compensation for member states that previously supplied weapons and equipment is also not transformative.
There is currently a debate over what level of compensation the member states should receive. While some countries with large deliveries prefer a larger compensation, the discussion is increasingly approaching around 10% for the entire period of deliveries.
We currently have a proposal from the High Representative – the Vice-President – to use these funds to reimburse member states for costs of past arms deliveries, as well as to finance new joint procurements and support the operations of the EUMAM mission in Ukraine. But discussions are ongoing
– Anita Hipper
Ukraine has already urged using the unlocked EPF funds to strengthen its air defense. In early June, after a large-scale shelling, Foreign Minister Andriy Sibiga described funding the PURL program and the procurement of additional Patriot systems and missiles for them as one of the first steps.
The European Peace Facility was created as an off-budget EU mechanism to fund military aid to partners; since Russia’s full-scale invasion began, it has become one of the instruments of supporting Ukraine and is intended to offset member states’ costs for supplying weapons and equipment.
Context and Prospects for Using the Funds
The expected distribution of funds could strengthen Ukraine’s defense and reinforce further EU engagement with partner countries. The final decision will depend on further negotiations in the Council and the European Parliament.
The unlocking of the EPF signals the EU’s willingness to support Kyiv in a crisis and to strengthen defence cooperation within European security.
The EU could channel a billion euros to Ukraine following the unlocking of the Peace Facility.