| 21 July 2023
The European Union is rallying behind Ukraine's defense in the face of Russia's ongoing invasion, as officials announce plans for a groundbreaking €20-billion ($22-billion) fund. The fund is aimed at providing Ukraine with essential weaponry, ammunition, and military aid over the next four years. This significant proposal was outlined by Josep Borrell, the EU's foreign policy chief, during a crucial meeting with EU foreign ministers in Brussels on Thursday.
The initiative, which involves creating a dedicated section on the European peace facility, aims to allocate up to €5 billion annually for the next four years to address Ukraine's defense needs comprehensively. The goal is to transform existing support into a long-term commitment that will bolster Ukraine's security and resilience amid the ongoing conflict.
Borrell highlighted the importance of evaluating the needs and costs of their long-term security commitment to Ukraine. This comes in response to international efforts to provide Ukraine with lasting security assurances, as recently announced by the G7 group during the NATO summit in Vilnius, Lithuania.
While NATO leaders emphasized their support for Ukraine's potential future membership in the military alliance, they refrained from extending an immediate invitation, much to the disappointment of Ukrainian officials. Despite this, Western officials have stressed their commitment to presenting Ukraine with a robust package of support proposals designed to counterbalance the Russian forces' military advantage.
The fund plan presented to EU foreign ministers during the foreign affairs council meeting was met with cautious optimism. However, a more detailed debate on the matter is set to take place on August 31 during the ministerial meeting in Toledo, Spain. Final political approval is not expected until European leaders convene at EU summits in October or possibly December.
Nevertheless, certain member states, particularly Hungary, may pose opposition to the initiative. Hungary's reluctance is evident from their ongoing refusal to disburse $556 million in current European Peace Facility funds designated for Ukrainian aid. Their stance is contingent on the removal of Hungarian bank OTP from Ukraine's blacklist.
Hungarian Foreign Minister Peter Szijjarto affirmed their resistance to both the current disbursement and the proposed €20-billion fund until their demands are met. The situation reflects the delicate diplomatic balancing act the EU faces in solidifying support for Ukraine while considering the interests of all member states.
The European Peace Facility, established in 2021, was originally valued at $6.3 billion but has since expanded to $13.4 billion. The facility aims to finance preventive measures against conflicts, promote peace, and enhance international security. It allows EU countries to receive reimbursements for providing military aid, including weapons and ammunition, to nations outside the bloc.
As the situation unfolds, Ukraine's future in NATO remains a pivotal point of discussion, with leaders stressing the need to fortify Ukraine's military capabilities and security while cautiously addressing the issue of membership. The proposed €20-billion fund represents a significant step in this direction and signals the EU's dedication to bolstering Ukraine's position during these challenging times. However, political maneuvering and negotiations with hesitant member states may still determine the fate of this critical support package.
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