Friday, November 22, 2024
HomeWorldEuropeEU to set up $5.5bn aid fund for Ukraine

EU to set up $5.5bn aid fund for Ukraine

The EU has pledged an additional 5bn euros ($5.5bn) in military aid to Ukraine, IntelliNews reports.

The decision, taken during discussions on 13 March after weeks of deliberation, came as the EU wants to appear united in its support for Ukraine especially amid continued delays in funding and ammunition deliveries from the US.

The aid will be provided through the European Peace Facility, a mechanism set up in 2021 to provide military aid to countries. The latest package will become a new fund – the Ukraine Assistance Fund. The EU’s top diplomat Josep Borrell tweeted, following the announcement:

“We made it. The message is clear: we will support Ukraine with whatever it takes to prevail.”

This new tranche of support is badly needed for Ukraine, which is currently suffering defeat on the front line.

However, there was no consensus among many EU countries on the operational framework of the European Peace Facility. Germany, for example, insisted that bilateral support be treated as contributions to the fund. This was opposed by many countries, who suggested that such a process could lead to Germany making no contributions to the EPM, which could lead to an end to EU military aid. In the end, after some adjustments were made, it was agreed.

Paris also stalled the deal by demanding that it include a rule that all money must be spent on equipment made in the EU. However, France agreed to some flexibility during the interim period amid concerns that Europe may not have the capacity to fulfil all of Kyiv’s requests.

Some have raised concerns about the true nature of the aid package, despite the EU’s success in resolving differences. According to Politico, citing sources in Brussels, the Ukraine aid fund is more symbolic than substantive.

For example, a significant concession to Germany means that much of the contributions could come in the form of discounted bilateral arms deliveries rather than new financial resources. This has raised questions about the actual impact of the fund on providing tangible support for Ukraine’s military capabilities, and no one is sure how much money the fund will ultimately receive.

RELATED ARTICLES

Most Popular