Hungary lifts block on Ukraine arms reimbursements – Politico

The Hungarian government, led by Prime Minister Péter Magyar, has lifted its veto on the European Peace Facility (EPF) mechanism that partially reimburses EU countries for weapons transferred to Ukraine.

According to Ukrinform, the information was reported by Politico, citing six diplomatic sources.

The move ends a two-year blockade imposed by the previous government of Viktor Orbán.

A Hungarian ambassador to the EU Political and Security Committee reportedly announced the change in Budapest’s position on Monday, according to an official present at the meeting. Five additional Brussels diplomats confirmed the information.

The European Peace Facility (EPF) is an off-budget EU instrument that reimburses member states for around 40% of the cost of weapons provided to Ukraine from their own stockpiles. Because foreign policy decisions in the EU require unanimity, Hungary had long blocked the mechanism.

Due to Budapest’s position, more than €40 billion in reimbursement payments accumulated within the fund, frustrating major donor countries including Germany and the Netherlands and prompting Brussels to seek alternative ways to ensure continued arms and ammunition deliveries to Ukraine.

Hungary’s decision to unblock the EPF allows for the immediate release of €6.6 billion in compensation, with further funds expected to be made available later, the report said.

EU member states must now agree on new rules for using these resources, including whether funds will be returned to national budgets or redirected to additional purchases for Ukraine. Questions also remain about maintaining the 40% reimbursement rate and future refinancing of the fund. These issues are expected to be discussed next week at an informal EU defense ministers’ meeting in Cyprus.

As previously reported, Hungarian Prime Minister Péter Magyar has stated that Hungary will still not provide military support to Ukraine.