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EU Agrees Terms to Release €6.6bn from Peace Facility for Ukraine

Clearing a legal block, the deal creates a three-way split that leaves final allocations to defence ministers.

Overview

  • EU foreign policy chief Kaja Kallas announced on Sept. 25 that member states have agreed terms to unlock €6.6 billion from the European Peace Facility for Ukraine.
  • The package is divided into three parts: €4.7 billion for reimbursements to member states, €900 million to top up the EU Military Assistance Mission for Ukraine (EUMAM), and €1 billion for joint procurement.
  • How the €4.7 billion reimbursement pot will be split between states and how much will be passed directly to Kyiv remains unresolved and will be settled by EU defence ministers at a Council meeting on Sept. 28.
  • Some countries, notably Germany and Sweden, have said they will give their reimbursement shares back to Ukraine, while the reimbursement mechanism had been frozen after Hungary blocked it and took the issue to court before that case was dismissed on Sept. 9.
  • The EPF was expanded after Russia’s 2022 invasion to allow direct lethal aid and has delivered roughly €11.1 billion to Ukraine since 2022, so final decisions next week will affect both short-term supplies and the EU’s wider signal of unity and deterrence.