Hungary is blocking a new European envelope of 500 million euros to compensate member states that supply weapons to the Ukrainian army. European diplomats reported this on Wednesday. Budapest confirms.
Since the start of the Russian invasion of Ukraine in February last year, the European Union has been compensating member states for arms transfers to Ukraine through the so-called European Peace Facility (EPF). They receive compensation amounting to 40 percent of the value of the weapons and ammunition they send to Kiev from their stocks.
The Hungarian government confirmed on Wednesday that it does not agree to the payment of a new tranche of 500 million euros. She insists that the EPF cannot be used exclusively for the war in Ukraine. “That would not leave enough resources to promote EU interests in other regions,” said Budapest.
Increase budget
The EPF is not part of the European budget. The fund, which is backed by contributions from member states, was launched in 2021 to finance European foreign policy operations. Originally, a budget of 5.7 billion euros was foreseen until 2027, but because of the war in Ukraine, an extra 2 billion euros has already been invested and there is an agreement in principle to increase the ceiling by another 3.5 billion euros.
Counteroffensive
The member states must decide unanimously on the use of the money. Since the invasion, member states have already released 3.6 billion euros for arms transfers to Ukraine. Hungary, which itself does not supply arms to Ukraine, had never resisted. Stopping payments could discourage some member states from continuing deliveries as Ukraine prepares a counter-offensive and demands heavier weapons from its allies.
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