In a major geopolitical breakthrough, Hungary has officially lifted its long-standing veto on the use of the European Peace Facility (EPF) to reimburse EU member states for military assistance provided to Ukraine. As reported by Politico, citing European diplomats, this decision was finalized during a key meeting of EU representatives, marking an end to months of political gridlock. The resolution paves the way for the immediate disbursement of approximately €6.6 billion, addressing a massive backlog of unpaid compensations that had threatened to stall future European defense support for Kyiv.
For nearly two years, Budapest’s resistance under Viktor Orbán’s administration had paralyzed the EPF, which covers roughly 40% of the cost of weapons and ammunition sent to Ukraine from the stockpiles of EU member states. This gridlock had created a cumulative backlog of over €40 billion in outstanding commitments. With the veto now removed, European capitals—particularly those in Central and Eastern Europe that historically provided the bulk of early military aid—can finally recoup their expenditures. This financial relief is expected to incentivize member states to authorize new security assistance packages, injecting much-needed momentum into Ukraine’s defense efforts.
The timing of this decision is critical for Kyiv. Ukrainian Foreign Minister Andrii Sybiha has already urged EU counterparts to direct a portion of the unlocked funds toward the procurement of advanced air defense systems, such as Patriot batteries and missiles. Sybiha suggested utilizing joint procurement frameworks, including NATO-coordinated programs, to streamline these acquisitions. Securing Ukraine’s airspace remains the top priority for Kyiv as Russia intensifies its strikes against critical infrastructure.
While this breakthrough represents a significant diplomatic victory for Brussels, analysts suggest it also highlights the urgent need to reform EU decision-making processes. The fact that a single member state could stall critical security funding for years underscores the vulnerability of the EU’s foreign policy apparatus. Nevertheless, the resolution of the EPF dispute signals a renewed European commitment to Ukraine’s sovereignty and long-term stability.