Hungary Lifts Veto on €6.6 Billion EU Reimbursement for Weapons to Ukraine
Hungary has lifted its veto on EU reimbursements to member states for weapons supplied to Ukraine via the European Peace Facility. This decision unblocks €6.6 billion. Hungary had blocked payments since early 2023, creating a backlog of over €40 billion.
The Hungarian government has lifted its veto on partial reimbursement to EU countries for the cost of weapons sent to Ukraine. The change in policy was announced by Hungary's ambassador to the Political and Security Committee of the EU Council. This decision unblocks €6.6 billion in reimbursements through the European Peace Facility (EPF).
The EPF is an off-budget EU mechanism that reimburses countries for approximately 40 percent of the cost of weapons supplied to Ukraine. EPF decisions require unanimity, which allowed Hungary to block payments since early 2023, creating a backlog of over €40 billion. This caused dissatisfaction among major donor countries like Germany and the Netherlands.
The lifting of the veto is a positive signal for member states that have provided the most support to Ukraine, allowing them to receive reimbursement. Countries must now determine new criteria for using the funds, including whether reimbursements should be returned to national budgets or directed to additional support for Ukraine, as well as the reimbursement rate and EPF refinancing. These issues will be discussed next week at an informal meeting of EU defense ministers in Cyprus.