Today at 01:03
Hungary has lifted its veto on the European Peace Facility (EPF), ending a two-year blockage that prevented EU member states from receiving compensation for military aid provided to Ukraine, according to Politico.
The decision was taken by the government of Prime Minister Péter Magyar and marks a significant shift from the policy pursued by former Prime Minister Viktor Orbán, whose administration had repeatedly blocked the mechanism, UATV English reports.
According to six diplomatic sources cited by Politico, Hungary’s ambassador to the Political and Security Committee informed EU partners of Budapest’s decision during a meeting on Monday. The move was later confirmed by several diplomats familiar with the discussions.
The European Peace Facility is an off-budget EU instrument that reimburses member states for part of the military equipment they transfer to Ukraine. Under the mechanism, countries can recover roughly 40% of the value of weapons and ammunition supplied from their national stockpiles.
Because EU foreign policy decisions require unanimous approval, Hungary’s opposition had effectively frozen reimbursements for more than two years.
The blockade resulted in a backlog exceeding €40 billion, creating growing frustration among major contributors such as Germany and the Netherlands and forcing Brussels to explore alternative ways of financing military support for Ukraine.
With Hungary’s veto removed, approximately €6.6 billion in reimbursements can now be released immediately, while access to the remaining funds is expected to follow once member states finalize implementation details.
EU governments must now agree on how the resources will be used. Discussions include whether the money should return directly to national budgets or be reinvested into new military purchases for Ukraine. Officials are also expected to debate whether the current 40% reimbursement rate should be maintained and how the fund should be replenished in the future.
The issue is expected to be discussed further during an informal meeting of EU defense ministers in Cyprus next week.
Despite lifting its objection to the reimbursement mechanism, Hungary has maintained that it will not provide military assistance to Ukraine directly.
