EUR 5B in military aid: EU reveals details of special fund for Ukraine

The European Council today decided to increase the financial ceiling of the European Peace Facility (EPF) by EUR 5 billion in current prices, and ring-fence this top-up for Ukraine, by establishing a dedicated Ukraine Assistance Fund (UAF) within the EPF.

That's according to a statement posted on the website of the European Council.

"The newly established UAF will allow the EU to further support the evolving needs of the Ukrainian Armed Forces through the provision of both lethal and non-lethal military equipment and training," the statement reads.

The creation of the Ukrainian Aid Fund aims to maximize the added value of these resources in terms of delivering more and better operational support to Ukraine, in addition to bilateral efforts in this area at the level of member states. At the same time, attention will be focused on increasing the share of joint orders from enterprises of the European and Norwegian defense industry.

In parallel, the Council decided today to improve the governance rules for the facility to make them more sustainable and adapt them to the new international circumstances. The improved governance rules will build on well-functioning national procurement structures as well as existing framework contracts, leveraging both a lead nation approach and the European Defense Agency (EDA), and including the joint procurement of the required defense equipment from the European defense industry and Norway - including small and medium sized enterprises - while allowing for flexibility in supply chains which may include operators established or with production facilities outside the EU or Norway.

The reimbursement of member states' donations (i.e., from stocks, unilateral and joint purchases of equipment available in the market, and unilateral procurement) will be limited after a transition period.

"Following today's decision, the EPF financial ceiling will total over EUR 17 billion for the 2021-2027 period," the statement said.

"The EU is living up to its commitments. The Ukraine Assistance Fund turns our words into action. With the fund, we will continue to support Ukraine defend itself from Russia's war of aggression with whatever it takes and for as long as we need to," said Josep Borrell, High Representative for Foreign Affairs and Security Policy.

Ukrainian Foreign Minister Dmytro Kuleba, who attended a meeting of the EU Foreign Affairs Council, said the EU member states had made a positive decision to allocate EUR 5 billion in military aid to Ukraine.