Budapest allegedly demanded guarantees that the EPF will maintain its "global" vision in the future and will not be used exclusively for arming Kiev, the source was cited as saying.
The eighth tranche was supposed to be allocated to Ukraine next Monday.
The EPF was established in March 2021 under the Common Foreign and Security Policy in order to strengthen the EU's role as a global security provider. The declared goals of the EPF include the maintenance of peace and the prevention of conflicts. The EPF's budget for the period 2021-2027 amounts to 5.69 billion euros.
Last year, EU member states agreed to use the EPF to fund part of military supplies to Ukraine. In late December, EU foreign ministers agreed to boost the EPF's funding by 2 billion euros with the possibility of a further increase at a later stage.
Western countries have been supplying Ukraine with various types of weapon systems, including air defense missiles, multiple launch rocket systems, tanks, self-propelled artillery, and anti-aircraft guns since Russia launched its special military operation in Ukraine over a year ago. Moscow has warned that arms deliveries do not contribute to a peaceful resolution and further escalate the conflict, risking full-scale NATO involvement in the fighting.