EU proposes creating €20 bln Peace Fund for military aid to Ukraine

On July 20, during a meeting, the ministers of foreign affairs of the European Union countries discussed creating a "separate component" of the European Peace Fund to ensure Ukraine's long-term defense needs.

This was stated by the EU's high representative for foreign and security policy, Josep Borrell, quoted by the European Pravda.

"We proposed to create a separate section within the European Peace Fund to provide up to 5 billion euros per year for the next four years for Ukraine's defense needs," said the top European diplomat.

Borrell emphasized that the European Union is focused on turning Ukraine's support "into a long-term commitment in the security sphere."

A high representative of the EU hinted that this is related to the "security obligations" the EU can offer Ukraine.

The top diplomat is sure that this will allow the same tool that "worked very well and is working" to be used to support Ukraine.

However, it will have separate financing specifically for Ukrainian defense needs and will be calculated immediately from a several-year perspective.

Borrell added that the issue will be discussed in more detail at the end of August at an informal meeting of EU foreign ministers in Toledo. As previously reported by the mass media, the European Union seeks approval of the initiative by autumn.

It should be noted that the European Union, through the European Peace Fund, already provides similar assistance to Ukraine. However, it is carried out through tranches that individual member states can block. In addition, the volume of the fund is quickly exhausted, and only recently it had to be increased.

As reported, at the end of June, Borrell proposed planning the EU's military support for Ukraine as a long-term project to strengthen its defense capabilities strategically.

In addition, the Committee of Permanent Representatives of the Governments of the Member States of the European Union (Coreper II) increased the European Peace Fund (EPF), which finances arms for Ukraine, by 3.5 billion euros.

For reference:

In March 2021, the Council of the EU approved a new financial instrument – the European Peace Fund with a capacity of 5 billion euros, which will be used to finance activities within the framework of the EU's Common Foreign and Security Policy (CFSP) in the period 2021-2027.

From this fund, the European Union allocates funds for weapons, which the EU member states transfer to Ukraine.

As Rubryka wrote, on April 13, the Council of the European Union supported allocating 1 billion within the European Peace Fund (EPF) to support Ukraine's armed forces. This will allow EU member states to be reimbursed for ammunition provided to Ukraine from their stocks.