POLITICO: EU unlocks Ukraine aid after Hungary ends blocking stance

The new Hungarian government’s move to improve relations with Brussels could release billions in repayments for military assistance to Ukraine.

Prime Minister Péter Magyar’s cabinet has removed its veto on partial reimbursements to EU countries for weapons supplied to Kyiv, ending a two-year blockage introduced under the previous government of Viktor Orbán. 

The policy shift was announced on Monday, June 1, by Hungary’s ambassador to the Political and Security Committee, the Council body responsible for security and defence policy, according to an official present at the meeting who spoke to POLITICO. The decision was also confirmed by five other EU diplomats.

The European Peace Facility (EPF) is an off-budget EU financing tool that refunds member states for around 40 percent of the cost of arms they transfer to Ukraine from their own stocks.

As EPF decisions require unanimous approval, Hungary was able to block the mechanism through EU foreign-policy procedures.

This resulted in a backlog exceeding €40 billion in reimbursements, angering major donor states such as Germany and the Netherlands, and pushing the EU to seek alternative ways to keep weapons and ammunition flowing to Ukraine during a critical phase of the war.

Budapest’s decision to lift its EPF veto immediately unlocks €6.6 billion in repayments, with additional funds expected to follow.

The policy shift is part of a wider effort by Magyar to reset Hungary’s relations with the EU, NATO, and Ukraine.

Orbán had increasingly aligned Hungary’s foreign policy with Russia, straining relations with EU partners due to repeated obstruction on Ukraine and disputes over rule of law and corruption concerns.

By Jeyhun Aghazada