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Politico: EU approves €1.4bn in military aid from Russia's asset profits, Hungary's opinion bypassed

Budapest cannot decide where the money from the UAF fund will be spent because it did not vote for its creation. The funds in question did not belong to EU taxpayers. 

Politico: EU approves €1.4bn in military aid from Russia's asset profits, Hungary's opinion bypassed
Hungarian Prime Minister Viktor Orban during a plenary session at the European Parliament in Strasbourg, France, 11 September 20
Photo: EPA/UPG

The European Union has approved 1.4 billion euros in military aid for Ukraine from the proceeds of Russia's frozen assets. The funds will be used, in particular, to purchase air defence equipment, Politico reports, citing four diplomats.

This is the first tranche of aid. The funds will come through the Ukraine Assistance Fund (UAF).

Hungary tried to block this payment, but the European Council found a way around it: Budapest has no right to decide, as it did not vote for the creation of the UAF. 

"The reason the workaround is allowed is that the funds do not come from EU taxpayers, officials said," the article says. 

The money will not be used for reimbursement, but for direct purchases. A quarter of the amount will be used for purchases from Ukrainian industry.

According to an internal Council communication seen by Politico, countries had until 11:00 a.m. to express their views, and none voted against the decision. The decision did not require unanimity, meaning Hungary could not block it.

But Hungary continues to block the payment of €6.6 billion as partial reimbursement for weapons purchased for Ukraine. According to one diplomat, Budapest is "furious" about what happened today.

The final amount of proceeds from the frozen assets that will go to Kyiv is not yet known, but diplomats say it ranges from €1.2bn to €1.4bn. The official decision is expected to be announced today. 

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