The new Hungarian government's efforts to warm relations with Brussels could pave the way for billions of euros in military aid to Ukraine, Politico reports.
The newspaper reported that the Hungarian cabinet, led by Prime Minister Péter Magyar, has lifted its veto on a partial reimbursement of EU countries' costs for arms they send to Kiev, ending a two-year blockade imposed by Viktor Orban's previous government.
An official present in the room at the time told the newspaper that the Hungarian ambassador to the Political Affairs and Security Committee, the Council body that oversees security and defense policy, announced the policy change on Monday, June 1. The article adds that this decision was confirmed by five other EU diplomats.
It explains that the European Peace Facility is an extra-budgetary EU funding mechanism that reimburses countries for approximately 40% of the cost of weapons they send to Ukraine from their own funds. stocks.
Since decisions on the European Peace Fund are taken unanimously by member states, Hungary has managed to block this mechanism within the EU's foreign policy decision-making process.
According to the publication, this has led to overdue repayment obligations of more than 40 billion euros, which has angered major donor countries such as Germany and the Netherlands.
The EU has also had to find workarounds to ensure the uninterrupted supply of vital weapons and ammunition to Ukraine during the period of maximum threat from Russian troops.
The publication suggests that Magyar's change of position is part of a broader effort to restore relations with the EU, NATO and Ukraine.
On Friday, Hungary reached an agreement with the European Commission to release 16.4 billion euros in frozen EU funds in the coming months.
Hungary has also started negotiations with Ukraine over the rights of the country's ethnic Hungarian minority and dropped its opposition to a €90 billion EU loan for Kiev. The country also signaled that it would drop its long-standing opposition to Ukraine's EU membership bid.
“The lifting of the EPF veto would be a positive reinforcement for those member states that have provided the most support to Ukraine. Now they will finally receive some compensation, which would also make the burden more evenly distributed,“ said an EU diplomat who asked not to be named.
The countries will now have to discuss new criteria for using the funds - whether to return the refund to national budgets or direct it towards additional support for Ukraine.
The publication adds that they will also have to decide whether to maintain the current rate of refund – about 40% of the cost of the weapons – and how to refinance the European Defence Fund (EPF).
These issues related to the EPF are expected to be discussed at an informal meeting of EU defence ministers to be held next week in Cyprus.
„Kiev is also interested in these funds being used to purchase additional weapons“, the article says.