newsare.net
The European Peace Facility (EPF) was created in March 2021 as a funding instrument aimed at enhancing the EU's ability to prevent conflicts, build and preserve peace, and strengthen international security and stability. The EPF rests on two pillars. The firsBriefing - European Peace Facility – For Ukraine, but not only - 28-04-2025
The European Peace Facility (EPF) was created in March 2021 as a funding instrument aimed at enhancing the EU's ability to prevent conflicts, build and preserve peace, and strengthen international security and stability. The EPF rests on two pillars. The first is to fund EU military operations and missions under the common foreign and security policy. The second is to provide assistance to countries in the EU's eastern neighbourhood, the Middle East and Africa to strengthen security in their respective regions. Following Russia's all-out invasion of Ukraine in February 2022, the EU started using the EPF to rapidly deliver military aid to Ukraine. This support was provided alongside continued assistance to the EU's eastern neighbourhood, as well as to partners in the Middle East and Africa. The EPF has a total financial ceiling of more than €17 billion for the 2021-2027 period. As the facility is an off-budget instrument, EU Member States contribute directly to it, based on the gross national income key. Currently, the EPF lacks fresh resources to continue supfporting Ukraine in facing the war. Furthermore, since March 2023, Hungary has refused to mobilise EPF funds in military aid to Ukraine. In line with the sanctions imposed on Russia in 2022, Russian assets held in EU banks were frozen. In May 2024, the Council of the EU allocated 90 % of the 'windfall' (extraordinary) profits from these frozen assets to the EPF. A first transfer of €1.5 billion from these profits to Ukraine took place in mid-2024. A second payment, possibly amounting to €2 billion, is expected in spring 2025. Given Hungary's veto, the EU is looking for more reliable ways to continue assistance to Ukraine than by means of the windfall profits from the Russian assets channelled through the EPF. On 24 October 2024, the EU created the Ukraine Loan Cooperation Mechanism (ULCM) and issued an exceptional macro-financial assistance loan of €18.1 billion, the EU's part of an EU-G7 syndicated loan to Ukraine totalling €45 billion. Starting after March 2025, 95 % of the windfall profits from the Russian assets held in EU banks will be allocated to the EU budget and channelled through the ULCM to Ukraine. The remaining 5 % will be allocated to the EPF. Beyond Ukraine, for which the EPF-funded approved military support amounts to approximately €10.6 billion, the EPF has an available budget of €6.4 billion to fund, until 2027, both the common costs of EU military missions and operations abroad – including its military assistance mission in support of Ukraine – and assistance measures for the armed forces of partner countries. Source : © European Union, 2025 - EP Read more
03:45
03:24
15:50
