The EU was unable to agree on a budget for a new aid fund for Ukraine, media write.

EU countries were unable to agree on the annual budget of the new military aid fund for Ukraine, which should amount to approximately five billion euros, Bloomberg reports, citing sources familiar with the situation.

 

“Discussions are underway on plans to create a new fund for military support for Ukraine <...> The European External Action Service has proposed setting the annual budget of the fund at approximately five billion euros, but this has not received uniform support from member countries,” the article says.

The new fund is seen as an improved version of Ukraine's current funding mechanism under the European Peace Fund (EPF). Allocations through the EPF have been increased several times, but each such decision requires the unanimous support of all EU members, and Hungary has recently opposed it.

To date, Hungary is blocking many  EU decisions on Ukraine, including the eighth tranche of military aid for 500 million euros, five billion euros from the EPF, a 20 billion euro military aid package over four years and 50 billion macro-financial assistance.

At the same time, the head of the European Council, Charles Michel, stated that EU leaders would be able to unanimously approve financial assistance to Ukraine at the beginning of the year. An extraordinary EU summit was scheduled for February 1.