EU foreign policy chief Kaja Kallas announced on 8 June 2026 in Nicosia that a new Hungarian defence minister has unblocked €6.6 billion in European Peace Facility funds for Ukraine, and that the EU is now discussing how to use the money. Speaking at an informal meeting of EU defence ministers, Kallas said the bloc has tabled a compromise proposal covering both aid to Ukraine and reimbursements to member states that have already contributed. She also noted that the €90 billion loan for Ukraine will be available as early as June.
Kallas outlined a busy agenda covering Ukraine, the Strait of Hormuz, the shadow fleet, and the European Security Strategy. On the Strait of Hormuz, she reported overnight escalation and stressed that the region needs a diplomatic solution, not further conflict. She confirmed that freedom-of-navigation sanctions on Iran will be applied for the first time on 8 June, and that the EU's Operation ASPIDES will be discussed. On maritime security, she said Operation IRINI has changed its rules of engagement and has begun boarding ships linked to Russia's shadow fleet, aiming to curb funding for the war in Ukraine.
Kallas also commented on the recent election in Armenia, calling the turnout good and noting that despite heavy Russian pressure, the Armenian people chose a European future. She pledged continued EU support for reforms.
On the question of Ireland supplying alumina to Russia, Kallas said that while the trade is not under sanctions, the EU should consider sanctions if the material is helping Russia fund the war. She urged member states to be more creative in finding ways to stop the conflict.
Regarding peace negotiations between Russia and Ukraine, Kallas said the EU must make both sides talk, but that Russia shows no direct willingness, as evidenced by its escalation of attacks. She noted some internal Russian discontent with the war, which the EU should leverage by increasing pressure and support for Ukraine. She defended the EU's role in preparing the substance of negotiations, including the five points put forward by the E3 (France, Germany, UK) that respect European core security interests. She called for strategic patience, arguing that Russia needs to be the demandeur for talks.
On anti-drone capabilities, Kallas said the EU is working hand-in-hand with NATO and that discussions will focus on Ukrainian defence industry cooperation with European industry, leveraging Ukraine's drone expertise.
On the Middle East, Kallas said a ceasefire is the first priority, after which the EU can help with escorting ships in the Strait of Hormuz. She stressed that the EU is in touch with both Iran and the US to push for a diplomatic solution.
Kallas confirmed that the compromise proposal for the €6.6 billion EPF funds was tabled after confessionals with member states, and that the timeline for agreement depends on member states. On conditions for Ukraine's use of the money, she said there are clear conditions for purchasing capabilities and reforms, but that Ukraine's urgent needs, especially air defence, must be the utmost priority.
The unblocking of €6.6 billion directly benefits Ukraine's defence capabilities and eases the burden on EU member states that have contributed to the EPF. The compromise proposal balances aid to Ukraine with reimbursements, potentially satisfying both donor states and those prioritising direct support. The focus on Ukrainian-European defence industry cooperation could boost European defence manufacturers, while the shadow fleet measures may increase costs for shipping companies and insurers. The lack of a clear timeline for the EPF funds creates uncertainty for Ukraine's planning.