European Union member states are set to increase the size of its fund to finance weapons deliveries by nearly 50%, but Hungary is still blocking plans for more of that money to be alloted to Ukraine, according to people familiar with the discussions.
(Bloomberg) — European Union member states are set to increase the size of its fund to finance weapons deliveries by nearly 50%, but Hungary is still blocking plans for more of that money to be alloted to Ukraine, according to people familiar with the discussions.
The bloc aims to add another €3.5 billion ($3.8 billion) to the European Peace Facility, which currently has a budget of about €7.9 billion. It reimburses governments for military deliveries to Ukraine, but is also used to support other countries.
Much of the fund has already been allocated for military aid to Ukraine since Russia’s invasion. But Hungary is blocking an 8th tranche of €500 million for Kyiv because of Ukraine’s decision to add a Hungarian bank to a list that shames companies that continue to do business in Russia, said the people, who spoke on condition of anonymity to discuss sensitive matters.
EU ambassadors agreed to the measure this week and the bloc’s foreign ministers are set to sign off on the plans when they meet in Luxembourg on Monday.
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