Hungary’s new government has ended the country’s two-year blockade on Ukraine arms reimbursements, enabling the EU to unlock €6.6 billion in immediate funding.
The U-turn marks an important pivot in Budapest’s foreign policy as the previous administration of Viktor Orbán had used the requirement for unanimous consent to stall the European Peace Facility (EPF), creating a backlog of over €40 billion in pending reimbursements.
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The backlog angered big donor countries like Germany and the Netherlands while forcing the EU to use workarounds to ensure Ukraine continued receiving crucial arms deliveries at a time when danger from Russian forces was mounting.
Budapest’s decision to lift its veto on the EPF, an off-budget EU funding mechanism that compensates countries for around 40% of the value of arms they send to Ukraine, immediately frees up €6.6 billion in reimbursements, with more expected to follow.
EU officials are now tasked with finalizing protocols for the distribution of the funds and future claims. Ukrainian Foreign Minister Andrii Sybiha has urged EU partners to leverage the newly available reimbursements to purchase air defense assets from the US through NATO’s Priority Needs List (PURL) program.
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