EU to release US$7.5 billion linked to Ukraine military aid

On Friday, European Union member countries reached an agreement to release €6.6 billion in EU funds allocated to military aid for Ukraine, according to EU foreign policy chief Kaja Kallas. The funds will be sourced from the European Peace Facility, which is utilized by EU members to finance military aid to nations outside the bloc.

Additionally, the EU governments will be reimbursed for the military aid they have provided. The released funds are set to be distributed as follows: €900 million will go towards the EU's military assistance mission for Ukraine, €1 billion will be utilized for new joint procurement of equipment, and the remaining €4.7 billion will serve to reimburse member states, some of whom have already expressed intent to channel their share to Ukraine.

Kallas expressed optimism about the deal, stating that it is "good news for Ukraine and bad news for Russia." She emphasized that Moscow's hybrid attacks aim to coerce Europe into reducing its support for Ukraine, but Europe's response is the opposite. The delay in releasing the funds stems from the fact that a substantial portion of the money had been stuck in the fund for months, initially blocked by the previous Hungarian government under the leadership of Russia-friendly Prime Minister Viktor Orban.

It remains uncertain precisely how much of the released funds will directly benefit Ukraine, as individual EU governments will determine how much of their refunds they allocate to fresh military aid for Kyiv.