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

The European Union has agreed on terms to release $7.5 billion in funding through its Peace Facility for Ukraine, according to EU foreign policy chief Kaja Kallas.

Kallas said $1 billion of the funds will go toward supporting the EU's military assistance mission, while $1.2 billion is earmarked for joint equipment purchases.

Continued EU support

The European Peace Facility is an EU mechanism used to fund military and defense-related assistance to partner countries, including Ukraine, outside the bloc's regular budget. The agreement on these terms signals continued EU financial backing for Ukraine's defense needs.

The breakdown provided by Kallas indicates the funds will be allocated across distinct purposes, with a portion supporting the EU's own military assistance mission and another portion dedicated to joint procurement of equipment among member states.

Details on the remaining portion of the $7.5 billion and the timeline for disbursement were not specified in the announcement.