Speaking on Monday to reporters in Cyprus, where EU defense ministers were meeting, Kallas said the newly available money would not be distributed entirely as reimbursements to member states as originally intended.
Under her proposal, only a portion would be returned to countries as cost reimbursements — including EUR 450 million owed to Poland — while the rest would finance new military aid for Ukraine.
"This is a compromise proposal meant to satisfy both sides," Kallas said. "It's not about everyone getting 100 percent, but about ensuring continued support for Ukraine going forward."
Hungary had frozen the funds in 2024, halting reimbursements to EU governments that had supplied Ukraine with arms and ammunition since Russia launched its full-scale invasion in 2022.
Kallas also said that Ukraine would receive its first tranche under a separate EUR 90 billion EU loan in June.
The European Commission plans to disburse EUR 9.1 billion this month, of which EUR 5.9 billion is earmarked for defense and EUR 3.2 billion for budget support.
Separately, the Commission announced on Monday it had paid out a seventh tranche of EUR 2.8 billion under the EUR 50 billion Ukraine Facility, a grant-and-loan instrument tied to Ukrainian reform milestones that runs through 2027.
Ukraine has now received nearly EUR 30 billion under that instrument, or about 77 percent of its total allocation.
(jh)
Source: PAP