Hungary lifts two-year blockade on EU reimbursements for weapons to Ukraine - Politico
Kyiv • UNN
Péter Magyar's government has unblocked 6.6 billion euros in military aid for Ukraine. This is part of the new prime minister's strategy to improve relations with the EU.
Efforts by the new Hungarian government to warm relations with Brussels could unlock billions in reimbursements for military aid to Ukraine, Politico reports, according to UNN.
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"The cabinet of Hungarian Prime Minister Péter Magyar has lifted the veto on partial reimbursement to EU countries for the costs of weapons they send to Kyiv, reversing a two-year blockade caused by the previous government of Viktor Orbán," the publication states.
The policy shift was announced on Monday by Hungary's ambassador to the Political and Security Committee, the EU Council body that oversees security and defense policy, an official present in the room at the time told the publication. The decision was confirmed by five other EU diplomats.
The European Peace Facility (EPF) is an off-budget EU financing mechanism that reimburses countries for about 40 percent of the cost of weapons they send to Ukraine from their own stocks.
Since decisions regarding the European Peace Facility require unanimity among member states, Hungary was able to block this mechanism through the EU's foreign policy decision-making process.
This created a delay in reimbursements of over €40 billion, angering major donor countries such as Germany and the Netherlands. It also forced the EU to seek workarounds to ensure the continued supply of weapons and ammunition to Ukraine "during a period of maximum danger from Russian troops," the publication writes.
"Budapest's decision to lift its veto on the EPF immediately releases €6.6 billion in reimbursements, with more to be reimbursed later," the publication says.
The change in position is part of Magyar's broader efforts to reset relations with the EU, NATO, and Ukraine.
On Friday, Hungary reached an agreement with the European Commission to unlock €16.4 billion in frozen EU funds in the coming months.
Hungary is beginning negotiations with Ukraine regarding the rights of the country's ethnic Hungarian minority and has ended its opposition to a €90 billion EU loan to Ukraine. The country has also signaled that it will drop its long-standing opposition to Ukraine's EU membership bid, the publication indicates.
Lifting the veto on the EPF "will be a positive reinforcement for those member states that have provided greater support to Ukraine," said an EU diplomat who wished to remain anonymous. "Now they will finally receive some reimbursement, which will also make the burden-sharing more equal," he noted.
Now that the veto has been lifted, countries will have to decide on new criteria for using the funds, including whether reimbursements should return to member states' budgets or be transformed into additional support for Ukraine. They must also decide whether to maintain the current reimbursement level—about 40 percent of the cost of weaponry—and how to refinance the EPF.
These issues concerning the EPF are expected to be discussed at an informal meeting of EU defense ministers next week in Cyprus.
"Kyiv is also keen for this money to be used for more weapons," the publication writes.
Speaking after another devastating Russian attack on Ukrainian cities, Foreign Minister Andrii Sybiha on Tuesday urged EU countries to use the reimbursed funds to purchase air defense systems from the US under the NATO-led PURL program.
"Use the unblocked European Peace Facility to fund the PURL program and purchase additional Patriot systems and missiles for Ukraine. Develop the missile defense coalition. Increase investment in Ukraine's long-range capabilities," Sybiha wrote in a social media post.
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