Cyprus and Greece are urging the European Union to prioritize its own defense industry in supplying military aid to Ukraine, according to diplomatic sources and a Bloomberg report. This stance comes despite an existing agreement allowing arms purchases from non-EU countries through a designated fund.
The report, republished by Russian media, highlights a potential hurdle in the EU’s united response to the Ukraine war. While Cyprus and Greece support continued aid, they reportedly argue that purchases should bolster the European defense sector, not benefit countries outside the bloc, especially those seen as adversaries.
Hungary’s Role in the Aid Stalemate
Meanwhile, Hungary remains the main obstacle to unlocking a €500 million package from the European Peace Facility (EPF) intended for Ukraine’s military. Budapest is also said to be hindering the implementation of a separate €5 billion fund agreed upon by other member states for 2024. The new Ukraine Assistance Fund aims to deliver critical supplies like artillery, ammunition, and air defense systems.
Belgian Foreign Minister Hadja Lahbib voiced mounting frustration on social media, stating that “agreements are made to be respected” and the EU cannot tolerate delays in military aid. Belgium currently holds the EU presidency, which will transfer to Hungary in July.
Discussions are reportedly underway to bypass a potential Hungarian veto and expedite the flow of funds to Ukraine. At a recent meeting of EU ambassadors, Hungary reportedly cited concerns about discrimination against Hungarian companies in Ukraine as a reason for blocking the disbursement.
As the EU navigates these internal disagreements, the focus remains on ensuring that aid reaches Ukraine efficiently while also considering the economic implications for the European defense sector.
