The government of Hungarian Prime Minister Péter Magyar has officially ended a two-year blockade on the European Peace Facility (EPF), unlocking €6.6 billion ($7.68 billion) in immediate funding to compensate EU member states for weapons supplied to Ukraine during Russia’s full-scale invasion of Ukraine.
This decision marks a fundamental pivot in Budapest’s foreign policy, as the previous administration of Viktor Orbán had used the requirement for unanimous consent to stall the fund, leading to a backlog of over 40 billion € ($46.52 billion) in pending reimbursements, according to Politico on June 1.
The reversal was announced by a Hungarian representative during a meeting of the EU’s Political and Security Committee, a development subsequently confirmed by multiple European diplomats.
By clearing this hurdle, the new government aims to ensure a more equitable distribution of the financial burden among EU countries that have consistently provided military equipment to Kyiv.
As stated by POLITICO, the European Peace Facility functions as a crucial mechanism that covers approximately 40% of the value of ammunition and weaponry transferred from national stockpiles to the front lines. With the veto removed, EU officials are now tasked with finalizing the protocols for the distribution of these funds and establishing procedures for future claims.
Kyiv has already identified strategic priorities for these resources, specifically advocating for their use to procure additional Patriot air defense systems.
