The EU foreign policy department is proposing a plan to increase the reimbursement of costs to European countries that provide arms to Ukraine.
What is known about the proposal to create an Aid Fund for Ukraine
It is noted that the document proposed by the EU diplomatic agency contains the conditions for the creation of the Ukraine Aid Fund with an annual budget of EUR 5 billion.
Journalists of the publication explain that currently EU countries receive compensation for weapons provided to Ukraine.
In particular, the volume of funds in the Fund has increased several times, however, the unanimous decision of all EU countries is required for the payment of funds from it.
Diplomats from several countries, including Germany, suggested at a meeting on Wednesday that the EPF as it currently exists is becoming less effective because most future supplies will come from new arms purchases rather than from existing stockpiles, — explains in the material of the publication.
It is noted that representatives of most EU countries seek to incorporate the fund into the European Peace Fund, while others are in favor of preserving the existing format.
In the Fund, as the authors of the material add, the provision of lethal and non-lethal aid to Ukraine from EU countries will be divided at the expense of joint purchases from European defense manufacturers.
How the EU plans to use the new aid fund for Ukraine
It is assumed that the fund will be used to meet the most urgent needs of Ukraine in artillery, specialized ammunition, drones and air defense equipment.
It is necessary to reach a political agreement as soon as possible on the proposed goal — to increase the general financial ceiling of the EPF by 5 billion euros, specially allocated for Ukraine, — representatives of the EU External Diplomacy Service note.
It is added that further comparable annual increases may be foreseen until 2027, based on Ukraine's needs and subject to political leadership from member states.
The article notes that since Russia's full-scale invasion of Ukraine, seven packages totaling 3.5 billion euros have been approved, as well as 2 billion euros for the supply of ammunition.
EU member states are arguing over reimbursement rates and the use of the procurement compensation fund, and Hungary has blocked the eighth tranche of funding to compensate EU countries for supplies.
