Brussels, 20 July, 2023 (GNP): In response to Russia’s invasion of Ukraine, the European Union is taking a significant step to provide long-term security assurances to the country. The EU is in the process of creating a €20 billion ($22 billion) fund to supply Ukraine with weapons, ammunition, and military aid, as announced by Josep Borrell, the bloc’s foreign policy chief, during a meeting with EU foreign ministers in Brussels.
Russia weaponises hunger and draws profit from food insecurity. Today we put forward a proposal for sustainable and predictable financing for defence support to Ukraine. HR/VP @JosepBorrellF remarks after #FAC here: https://t.co/Pkl2fljVTD pic.twitter.com/oAQyWCpJzI
— European External Action Service – EEAS 🇪🇺 (@eu_eeas) July 20, 2023
Josep Borrell outlined a four-year proposal during the meeting that aims to transform existing support into a steadfast commitment to enhance Ukraine’s security and resilience in the face of the ongoing conflict. “We propose the creation of a dedicated section on the European peace facility to provide up to five billion euros a year for the next four years for the defense needs of Ukraine,” stated Borrell.
This proposal aligns with an international effort to offer Ukraine lasting security assurances, as highlighted during the G7 group’s discussions on the margins of the recent NATO summit in Vilnius, Lithuania. At the NATO summit, leaders expressed that Ukraine should have the opportunity to join the military alliance in the future, but an immediate invitation was not issued, disappointing Ukrainian officials who had hoped for a more concrete timeline.
“We understand Ukraine’s aspirations, and we firmly believe that Ukraine’s future is in NATO,” said NATO leaders in a declaration.
Also Read: European Union aids Pakistan
To address President Volodymyr Zelenskyy’s disappointment and provide Ukraine with enhanced military capabilities, EU foreign ministers were presented with the fund plan during the foreign affairs council meeting. However, a comprehensive debate on the proposal is scheduled for August 31 during their meeting in Toledo, Spain.
While the European Peace Facility (EPF) was created in 2021 with an initial value of $6.3 billion, has now grown to $13.4 billion, and this new fund is set to boost its resources further. The EPF aims to finance actions that prevent conflicts, build peace, and strengthen international security, providing EU countries with reimbursement for military aid they extend to non-EU nations.
Despite this positive initiative, some member states, including Hungary, have expressed reservations about the proposal. Hungary, which is currently withholding $556 million in EPF funds allocated for Ukraine, insists that Hungarian bank OTP must be removed from a Ukrainian blacklist before disbursement. Hungarian Foreign Minister Peter Szijjarto asserted that Budapest would maintain the same stance with the new €20 billion proposal.
The final political approval for the fund is expected during EU summits in October or even December, taking into account any potential concerns raised by member states.