The EU Council adopted a decision about increasing the financial ceiling of the European Peace Facility (EPF) which allocates funds to purchase armament for Ukraine. The fund is set to increase to €7,979 billion by 2027, which will cover additional financial needs.

"The European Peace Facility has now become an integral part of the EU’s support to promote peace and security globally. Today’s decision brings the financial ceiling of the European Peace Facility to over €7.9 billion. Ensuring the financial sustainability of this instrument is crucial for our support not only to Ukraine, but also for our partners in other parts of Europe, Africa and the Middle East, as needs continue to arise," stated Josep Borrell, High Representative for Foreign Affairs and Security policy.

This decision implements the political agreement reached on 12 December 2022, when the Council decided to increase the overall EPF financial ceiling by €2 billion (in 2018 prices) in 2023, and allow for the possibility of a further increase at a later stage (up to €5.5 billion in 2018 prices until 2027).

The Council also decided to set a financial reference amount for the common costs of the EU Crisis Management Military Exercise 2023 (MILEX 23) at €5 million and introduce more flexibility in the collection and use of financial contributions from member states and in their use by the facility.

The European Peace Facility was established in March 2021 to finance all common foreign and security policy (CFSP) actions relating to military and defence matters, with the aim of preventing conflict, preserving peace, and strengthening international security and stability. In particular, the European Peace Facility allows the EU to finance actions designed to strengthen the capacities of non-EU countries and regional and international organisations in relation to military and defence matters.

The EPF is an off-budget instrument and originally had an overall financial ceiling of €5 billion in 2018 prices for the period 2021-2027, with annual ceilings that ranged from €420 million in 2021 to €1.132 billion in 2027.

Thanks to the EPF, the EU has been supporting the Ukrainian Armed Forces through seven successive support packages so far, as well as many other countries such as: Mozambique, Georgia, the Republic of Moldova, the Republic of Mali, Somalia, Niger, Jordan, Bosnia and Herzegovina, Lebanon and Mauritania

At the beginning of February, the EU Council adopted the seventh tranche of military aid for Ukraine using the EPF money, as well as allocating funds for the EU training mission for the Ukrainian troops.

As of the beginning of February 2023, the EU assessed the total military aid from the EU member states to Ukraine to be €12 billion, both through the EPF and on the bilateral ground.