EU officials considering reform to bypass Hungary’s blockade on Ukraine defense funds.

A proposed reform of the European Peace Facility (EPF) would make financial contributions voluntary, aiming to bypass Hungary's veto on military aid to Ukraine, which has caused a 6.5 billion euro (£7 billion) backlog. Hungary, broadly seen as the most Kremlin-proximate EU member, has repeatedly obstructed aid for Ukraine on account that it "prolongs" and "escalates" the ongoing war. These views have been often echoed in Slovakia since Ukraine-skeptic Prime Minister Robert Fico took office last fall.

Hungarian Foreign Minister Peter Szijjarto also said on July 23 that Ukrainian military aid will be blocked until Kyiv allows the transit of Russia's Lukoil oil. "I made it clear that as long as Ukraine fails to resolve the issue, everyone can forget about the 6.5 billion euros in compensation for arms transfers under the European Peace Facility," Szijjarto said in an interview with the ATV news channel. The reform plan is in its early stages, and would allow countries like Hungary to opt out of contributing, relieving tensions caused by Hungary's opposition to EU military support for Ukraine.

However, the move could weaken the EU's united front against Russia and raise budgetary concerns among member states. Though some EU leaders remain hopeful that Hungary will lift its veto, the ongoing friction between Hungary's positions and the majority of EU member decisions leaves the future of the EPF uncertain.

NATO to rethink alliance's relationship with Russia for first time in decades "It's time to now craft a new strategy in terms of (the allies') specific positions," a senior U.S. official said.

Defense ministers from NATO member nations will convene in Brussels Oct.

17-18 to discuss the matter.