Agreement between EU countries on the conditions for granting €6.6 billion to Kyiv

Brussels – The Member States of the European Union have reached an agreement on the arrangements for releasing €6.6 billion from the European Peace Facility (EPF) earmarked for Ukraine. This was announced by the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, in a post on X. “This is good news for Ukraine and bad news for Russia,” wrote Kallas, going on to explain how the funds will be allocated: €900 million will go towards the EU’s military assistance mission, €1 billion will fund new joint equipment purchases, and €4.7 billion will be used to reimburse Member States for their supplies, “with some capitals ready to transfer their share directly to Kyiv,” she explained. “Moscow’s hybrid attacks try to intimidate Europe into scaling back its support for Ukraine. Europe is doing the opposite,” Kallas concluded in the post. 

The European Peace Facility (EPF) is a unique funding mechanism for EU actions with military and defence implications, within the framework of the Common Foreign and Security Policy (CFSP). It is an off-budget instrument, which means that EU Member States pay their contributions directly on an annual basis, in line with the estimated annual budget for the instrument itself. It was designed to partially reimburse Member States for the arms and ammunition they supply to Ukraine. 

Since the start of Moscow’s invasion of Ukraine in February 2022 up to 2024, the EU mobilised €6.1 billion under the European Peace Facility to address Ukraine’s urgent military and defence needs. Furthermore, in March 2024, the EU decided to increase the financial ceiling of the European Peace Facility by €5 billion, establishing a dedicated Ukraine Assistance Fund. This brings the total financial support allocated through the European Peace Facility to €11.1 billion. The assistance measures agreed under the European Peace Facility finance the supply of lethal and non-lethal military equipment and materials, such as personal protective equipment, first-aid kits, fuel, ammunition, and missiles.