Unblocking the European Peace Facility
The agreement on the EPF marks a significant shift in the bloc’s financial strategy to sustain military aid. The €6.6 billion will be allocated across three primary areas: €4.7 billion to reimburse member states for costs associated with weapons transferred to Ukraine; €1 billion for new joint military procurement; and €900 million to fund the European Union Military Advisory Mission (EUMAM) in Ukraine.
Poland is set to be a primary beneficiary of the reimbursement mechanism. Pawel Zalewski, Deputy Minister of Defense for Poland, stated that Warsaw will receive €269 million from the previously blocked portion of the funds. This amount is in addition to more than €400 million agreed upon earlier for 2026–2027. In total, Poland is expected to receive €1.05 billion in net funds from the EPF since the start of the full-scale invasion. These resources are designated for the Polish Fund for the Support of the Armed Forces, which can be used for the modernization of the Polish army. The unblocking of these funds follows earlier disagreements among member states, with Germany previously advocating that the entire sum should be directed to Ukraine, a position not universally supported.
Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, confirmed the agreement reached on September 25. The resolution of this long-standing dispute allows the EU to move past internal bureaucratic hurdles and provide more predictable financial streams to member states contributing to Ukraine’s defense.
Sanctions Against Forced Deportation Networks
In a parallel development, the Council of the EU added ten individuals and seventeen organizations to its restrictive measures list. The sanctions target those responsible for the systematic illegal deportation of Ukrainian children to the Russian Federation and occupied territories, as well as their forced assimilation through ideological indoctrination and militarized education.
The organizational targets include the Moscow City Committee for Tourism, two Russian companies specializing in children’s recreation and military-patriotic education, and various children’s camps and sports centers in Russia and occupied Ukrainian territories. Notably, the list includes the Songdowon International Children’s Camp in the Democratic People’s Republic of Korea, a state institution accused of participating in organized programs to transport Ukrainian children in coordination with Russia to spread pro-Russian narratives.
Among the individuals sanctioned is Rustam Minnikhanov, the President of the Republic of Tatarstan, accused of facilitating the deportation of Ukrainian children to camps in his region. Other targets include education ministers and deputy ministers from the so-called “Donetsk People’s Republic,” as well as the heads of local children’s camps and schools. Under the new measures, the assets of these individuals and entities are frozen within the EU, and EU citizens and companies are prohibited from making funds or economic resources available to them. Individuals are also subject to travel bans preventing entry into or transit through the EU.
This decision follows the EU Council’s move on September 22 to extend restrictive measures against those undermining Ukraine’s territorial integrity for another 36 months. While the list was expanded, it also saw the removal of Russian oligarchs Alisher Usmanov and Mikhail Fridman, a move that has drawn scrutiny regarding the consistency of the bloc’s pressure on the Russian economic elite.
Joint Defense Industrial Projects
The European Commission has also allocated €325 million to support the creation and implementation of five European Defence Projects of Common Interest (EDPCI). These large-scale industrial initiatives are designed to foster collaboration among member states in areas too complex or costly for individual nations to handle alone. Ukraine participates in four of the five projects.
The projects focus on five priority areas: drones and counter-drone systems; maritime and seabed defense; space; air and missile defense; and strengthening security along the EU’s eastern flank. The funding comes from the European Defence Industry Programme (EDIP), which has a total budget of €1.5 billion. On average, 18 member states are involved in each project, covering the entire lifecycle of defense capabilities from development to deployment and operation.
Andrius Kubilius, the EU Commissioner for Defence and Space, emphasized that these projects are focused on sectors where Europe needs to act quickly to build a stronger and more resilient defense. The Commission will continue to provide financial support and help coordinate the implementation of these projects. Earlier indications suggest that the Baltic states are seeking an additional €500 million from the Commission to strengthen drone defense, while EU defense ministers are scheduled to discuss the transfer of Patriot interceptor missiles from EU stockpiles to Ukraine in exchange for future supplies funded by Kyiv.
These coordinated moves—unblocking financial resources, targeting specific Russian institutions, and integrating Ukraine into European defense industrial chains—illustrate the EU’s deepening structural involvement in the conflict. The shift from ad-hoc aid to long-term industrial and financial integration signals a sustained commitment to maintaining military parity and logistical support for Ukraine, while simultaneously imposing targeted economic and diplomatic costs on Russia.
