EU agrees to terms to release $7.5B in Peace Facility funds for Ukraine

EU member states have agreed on the terms for releasing €6.6 billion ($7.5 billion) in European Peace Facility funds for Ukraine, EU foreign policy chief Kaja Kallas said Friday.

“That’s good news for Ukraine and bad news for Russia,” Kallas said on US social media platform X.

Of the funds, €900 million ($1 billion) will support the EU Military Assistance Mission for Ukraine, while €1 billion ($1.2 billion) will fund new joint procurement of military equipment, she said.

The remaining €4.7 billion ($5.5 billion) will reimburse EU member states, with some countries already saying they will channel their share to Ukraine, according to Kallas.

“Moscow’s hybrid attacks try to intimidate Europe into scaling back its support for Ukraine. Europe is doing the opposite,” she said.

The European Peace Facility is an EU-funded mechanism that supports military assistance to partner countries.

It has previously been used to finance military equipment and supplies for Ukraine, as well as the EU military assistance mission.