EU to change Ukraine financing assistance model, in particular due to Hungary's actions

The European Union aims to discontinue the use of the European Peace Fund as the primary source of financing military support for Ukraine, partially owing to Hungary's continuous vetoes.

Source: RMF24, as reported by European Pravda 

Details: On Wednesday of next week, EU ambassadors are expected to secure a political agreement on the conditions of a €50 billion bailout for Ukraine using profits from frozen Russian assets.

This concerns a G7 loan for which the EU intends to provide up to €35 billion.

According to the draft decision, the majority of the cash will go to EU-funded projects, with only 5% going to the European Peace Fund, which compensates member states for the cost of military aid delivered to Ukraine. A majority will be sufficient for the decision, thus Hungary will be unable to veto it.

Constant obstacles imposed by Budapest are one of the reasons why the EU intends to discontinue using the European Peace Fund as the primary source of military support for Ukraine.

So far, almost 90% of the earnings from the Russian central bank's frozen assets have been directed to support Ukraine through the Peace Fund: the EU agreed on such a resolution in June, despite Hungary's objections, and transferred the first tranche there in a month.

Josep Borrell, EU High Representative for Foreign Affairs, stated that in addition to the initial payment, they intend to provide another €1 billion to Ukraine before the end of the year.

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