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BRUSSELS — EU countries today approved a first tranche of up to €1.4 billion in military aid for Ukraine coming from the proceeds of frozen Russian assets, according to four diplomats.
The money is channeled to Ukraine through the Ukraine Assistance Fund (UAF), but payments have been blocked by Hungary.
However, the Council’s legal service argued that Budapest cannot stop these payments because it abstained in the vote earlier this year creating the UAF. The reason allowing the work-around is that the funds do not come from EU taxpayers, EU officials said.
The money won’t be used for reimbursements, as is normally the case with the UAF, but for direct purchases of kit like ammunition and aerial defense systems. A quarter of the amount will be used for purchases from Ukrainian industries.
Countries had until 11 a.m. to voice their opinion, and none cast a negative vote, according to an internal Council message seen by POLITICO. The decision did not require unanimity, meaning Hungary could not block it.
Despite today’s agreement, Hungary is continuing to block the payment of €6.6 billion under the UAF as a partial reimbursement for weapons purchased for Ukraine. According to one diplomatic, Budapest is “furious” at what happened today.
The final figure of the amount of profits from the frozen assets that will go to Kyiv is still unclear, but diplomats said it ranges between €1.2 billion and €1.4 billion.
The formal announcement is expected at a meeting of EU foreign ministers in Luxembourg on Monday.
