EU foreign policy chief Kaja Kallas announced on 8 June 2026 that Western sanctions have cost Russia an estimated $1.2 to 1.5 trillion, and that her services have proposed over 80 new listings targeting Russia's military industrial complex, human rights violators, and propagandists for the upcoming Foreign Affairs Council. Speaking at an informal meeting of EU defence ministers in Cyprus, Kallas also confirmed that Hungary is lifting its veto on €6.6 billion in European Peace Facility funds, which she proposes to use to reimburse member states for past weapons deliveries to Ukraine, finance new joint procurements, and sustain the EUMAM Ukraine mission.
Kallas detailed that the €90 billion loan for Ukraine is ready to roll out, with the first €5.9 billion payout allocated for drones this month. Ministers discussed deepening defence industrial cooperation with Ukraine, particularly on air defence, and facilitating production of Ukrainian systems in the EU while establishing European companies in Ukraine.
On the Middle East, Kallas reported that EU member states approved sanctions against Iranian individuals and entities involved in disrupting transit through the Strait of Hormuz, marking the first use of the EU's new freedom of navigation sanctions regime. She noted that Operation ASPIDES is protecting shipping in the Red Sea, and she has proposed that ASPIDES could contribute to the Franco-British coalition in the Strait once conditions permit.
Regarding Russia's shadow fleet, Kallas highlighted that France and Sweden recently boarded tankers, and EU naval Operation IRINI has begun boarding shadow fleet vessels under updated rules of engagement. She also addressed the elections in Armenia, stating the EU is preparing an economic support package for Armenia.
In response to questions, Kallas rejected the idea of a standing EU army, arguing that defence is a national competence and that creating parallel structures would cause confusion. She emphasised that the EU should focus on pushing member states to work jointly and operationalise Article 42(7) of the Treaty on European Union.
Stakeholder impact: EU member states will benefit from reimbursement of past weapons deliveries and joint procurement under the EPF, but may face pressure to approve new sanctions listings and contribute to naval operations. Ukraine gains immediate drone funding and long-term defence industrial integration, though air defence remains a critical gap. Russia faces continued economic pressure from sanctions and shadow fleet disruptions, but the effectiveness depends on enforcement. EU defence industries could see increased demand for joint procurement and cooperation with Ukrainian producers, but may face competition from Ukrainian systems produced in the EU.