EU weighs new fund for Ukrainian military aid amid tensions
Ambassadors of EU countries will begin talks on Tuesday about a new initiative to finance military support for Ukraine. The funds are expected to come from voluntary contributions from member states, proportional to their national income, and profits from frozen Russian assets.
The European Union is attempting once again to secure funding for military aid to Ukraine. On Tuesday, the ambassadors from member countries will start discussions on a new fund aimed at providing support as early as 2024.
The main assumptions of the initiative were outlined in a document obtained by PAP. It emphasized that the primary goal is to address Ukraine's most urgent defence needs, such as artillery ammunition, air defence systems, and support for the Ukrainian defence industry.
Although the document includes space to specify the total amount of support, no specific figure has been provided at this stage.
Sources of funding: contributions and frozen Russian assets
Financing the aid is expected to come from two sources:
- Contributions from member countries – these will be proportional to their national income, calculated in the same way as payments to the EU budget.
- Profits from frozen Russian assets – according to estimates, this could amount to 900 million Euro (1.3 billion Canadian dollars) this year, which would help reduce the financial burden on member states.
This model would allow EU countries to decide how they provide support – whether in the form of ready-to-deliver weapons or through payments to a joint fund.
Assistance tailored to national policies
The new initiative provides a flexible approach to spending funds, aiming to respect the status of some EU countries, for instance, those maintaining neutrality on military issues.
The priority areas of support identified include:
- Delivery of large-calibre artillery ammunition (target minimum: 1.5 million shells),
- Air defence systems and long-range missiles,
- Support for the regeneration of Ukrainian army brigades (training and equipment),
- Joint industrial initiatives between the EU and Ukraine to strengthen the Ukrainian defence sector.
Bypassing Hungary's veto?
The new fund will not replace the European Peace Facility (EPF), whose funds for supporting Ukraine have been blocked by Hungary for months. Brussels is still considering bypassing Hungary's veto, particularly when it comes to reimbursing countries that have already provided military assistance to Ukraine.
For the new mechanism to be EU-wide, all EU countries would have to agree. However, to avoid another deadlock, participation in the initiative could be voluntary.
