EU defense fund unblocked, and with it new support for Ukraine

Key Points:

• The EU has resolved a months-long stalemate over a 6.6 billion euro ($7.5 billion) fund for Ukraine, announced by EU diplomat Kaja Kallas on September 25.
• The European Peace Facility (EPF), initially for non-lethal aid, was expanded to provide lethal aid to Ukraine following Russia's invasion and has delivered 11.1 billion euros ($12.7 billion) in support since 2022.
• The delay was caused by Hungary's Viktor Orban blocking the reimbursement mechanism and subsequent disagreements among EU countries on reimbursement terms and fund allocation.
• The 6.6 billion euros will be split into three parts: 4.7 billion euros to reimburse EU countries for weapons already delivered, 900 million euros to support the EU Military Assistance Mission for Ukraine (EUMAM), and 1 billion euros for new joint equipment procurement.
• Some countries, including Germany and Sweden, plan to reinvest their reimbursements into new support for Ukraine, with further commitments expected at the upcoming EU defense ministers meeting on September 28.