The European Union has proposed a bold and significant plan to provide substantial military support to Ukraine over the next four years, as the country continues to face a conflict with Russia. Josep Borrell, the EU's foreign policy chief, unveiled the blueprint, which includes earmarking €20 bn in funds to partially reimburse member states for their supplies to Ukraine.
The financial allocation will be channeled through the European Peace Facility (EPF), an off-budget instrument that has been instrumental in providing military assistance to the Ukrainian Armed Forces, with €5.6 bn already deployed. The new proposal seeks to establish a dedicated section within the EPF to allocate up to €5 bn per year for the next four years to meet Ukraine's defense needs.
"We propose the creation of a dedicated section under the European Peace Facility to provide up to €5 bn a year for the next four years for the defense needs of Ukraine," explained Borrell.
He also highlighted that this approach allows the EU to maintain compliance with its founding treaties, which prohibit the use of common funds for military or defense operations.
The EU's commitment to providing military aid to Ukraine was solidified during a recent summit, and the €20 bn plan represents a significant step towards bolstering the country's security.
However, there are some challenges ahead of the proposal. Before it becomes a fully-fledged plan, it will need to be negotiated and approved by member states. This process will begin with an informal ministerial meeting in Toledo, Spain, scheduled for late August.
One potential hurdle is the issue of veto power that some member states possess, which has hindered the smooth implementation of previous funding plans under the EPF. For instance, Hungary currently blocks the release of a €500 mn tranche in retaliation for Ukraine's decision to list OTP Bank as an "international sponsor of war."
Despite these potential obstacles, the EU's proposal comes at a crucial time for Ukraine, as it faces Russian strikes on its grain storage facilities. President Vladimir Putin's decision to suspend the Black Sea corridor, which facilitated the trade of low-cost cereals globally, has raised concerns about food security and commodity prices.
Describing the situation as an "atrocity," Borrell criticized Putin's use of hunger as a weapon against nations that hesitate to condemn Russia's actions in Ukraine. The EU's plan aims to provide the necessary support to Ukraine in its defense efforts while countering the wider repercussions of the conflict on global food security.
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