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EU’s 20 billion euro offer for Ukraine military aid faces resistance

EU’s 20 billion euro offer for Ukraine military aid faces resistance

EU’s 20 billion euro offer for Ukraine military aid faces resistance

EU’s 20 billion euro offer for Ukraine military aid faces resistance

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  • EU’s 20 billion euro offer for Ukraine military aid faces resistance.
  • Hungary has been withholding 500 million euros in payouts from the Peace Facility.
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  • EU military aid is to be coordinated with security packages negotiated individually.

The European Union’s plan to allocate up to 20 billion euros ($21.4 billion) for military aid to Ukraine is facing opposition from EU member states and may not proceed in its current form, according to diplomats.

Josep Borrell, the EU’s foreign policy chief, proposed establishing a fund with an annual budget of up to 5 billion euros over four years as part of broader Western security commitments to support Ukraine in its conflict with Russia in July.

Diplomats reveal that several countries, including Germany, a key EU member, have expressed reservations about committing such substantial amounts years in advance as EU defense ministers prepare to discuss the plan in Brussels.

While the EU and its member states have been major contributors of military aid to Ukraine since Russia’s invasion in February 2022, providing arms and equipment worth around 25 billion eurosBorrell’s proposal aims to establish long-term support through a dedicated fund within the European Peace Facility.

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“I’m not going to declare it dead at this point yet. But of course, improvements can always be made,” commented a senior EU diplomat on the plan. “Germany has had a lot of questions … and rightfully so. We’re talking about a lot of money.”

This debate over military aid coincides with ongoing discussions among EU nations regarding a proposal to provide Ukraine with 50 billion euros in economic assistance.

The EU faces challenges in meeting its target to supply Kyiv with 1 million artillery shells and missiles by March next year.

Additionally, Hungary has been withholding 500 million euros in payouts from the Peace Facility over Ukraine’s blacklisting of a Hungarian bank, OTP, though the bank has since been removed from the blacklist.

Governments emphasize the need for long-term EU military aid to be coordinated with security packages negotiated individually by member states with Kyiv, making it challenging to finalize a cost while these talks are ongoing.

Others highlight the strain on domestic budgets as a hindrance to making substantial long-term pledges while some argue for a focus on bilateral packages for now.

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The likelihood of Borrell’s original proposal being adopted is decreasing, but there is still interest in securing an EU-level commitment, leading to suggestions that the EU may opt for annual commitments rather than a larger amount spanning four years.

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