EU Countries Seal $5 Billion Deal for Ukraine Military Aid After Weeks of Debates

European Union countries have agreed to provide $5.48 billion for military aid to Ukraine as part of a revamp of an EU-run assistance fund.

The EU's member countries have been engaged in months of wrangling over a fund called the European Peace Facility, with France and Germany at the center of most discussions.

EU to Provide $5 Billion Ukraine Military Aid

Ukrainian soldiers take part in a training excercise operated by Britain's armed forces as part of the Interflex programme, in eastern England, on February 24, 2024, on the second anniversary of the invasion of Ukraine by Russia. Britain announced on Saturday a new £245 million ($311 million) defence package to help boost the production of "urgently needed artillery ammunition" for Ukraine, two years after war broke out with Russia.
(Photo : HENRY NICHOLLS/AFP via Getty Images)

Ambassadors from the EU's 27 member countries agreed to overhaul the European Peace Facility (EPF) fund at a meeting in Brussels on Wednesday.

EU foreign policy chief Josep Borrell posted on X, formerly Twitter, that they will support Ukraine with whatever it takes to prevail. The fund reimburses EU members for sending munitions to other countries, operating as a massive cash-back scheme.

France, a strong promoter of European defense industries, had insisted on a strict "buy European" policy for weapons eligible for refunds. Other countries argued that such a condition would inhibit international purchases to get weapons to Ukraine quickly.

Germany, the largest bilateral provider of military aid to Ukraine in Europe, had insisted that donations be considered in determining the amount of countries' financial contributions to the fund.

According to the diplomats, a compromise was eventually reached, which allowed flexibility in the "buy European" regulations and took partial bilateral aid value into account when determining members' financial contributions.

Ukrainian foreign minister Dmytro Kuleba said this is another powerful and timely demonstration of European unity and determination to achieve their common victory. Kuleba added that they look forward to the final decision being approved at the next EU Foreign Affairs Council meeting.

The final text claimed that the European military sector should be prioritized while allowing for flexibility in cases where it cannot provide within a timeframe compatible with Ukrainian needs.

Furthermore, the diplomats said the agreement would allow the funds to support a Czech proposal to purchase hundreds of thousands of artillery shells urgently needed from countries outside Europe. The EU claimed that the EPF had allotted Ukraine almost $6.7 billion for military assistance.

Borrell suggested establishing the Ukraine Assistance Fund, a new fund inside the EPF with a maximum annual budget of $1 billion for the next four years specifically for aid to Kyiv. This sparked a prolonged discussion about guidelines for additional assistance, eventually leading to Wednesday's agreement.

The compromise included measures to satisfy Hungary, which has previously stopped EPF payouts and stated it does not want its contributions to be used to buy weapons for Ukraine. According to EU officials, its contributions will be used under the agreement to fund military aid to other countries.

Hadja Lahbib, the foreign minister of Belgium and the current holder of the EU's rotating presidency, said that Ukraine needs more arms and equipment, and they will provide them in sufficient quantities and in a coordinated manner. Lahbib added that Europe is true to its commitments and that their freedom is at stake.

US to Send New $300 Million Weapons Package to Ukraine

On Tuesday, President Joe Biden's administration said that the US would send a $300 million new military aid package for Ukraine, the first such move in months since additional funding for Kyiv was still being blocked by Republican leaders in Congress.

The White House has been scrambling to come up with ways to provide additional military support, given the situation on the battlefield and the resistance to the funding from Republican hardliners.

US National Security Advisor Jake Sullivan said the funding for artillery rounds and explosives for High Mobility Artillery Rocket Systems (HIMARS) came from unexpected cost reductions from Pentagon contracts.

Sullivan told reporters that the ammunition would keep Ukraine's guns firing for a period, but only for a short period. He added that it is nowhere near enough to meet Ukraine's battlefield needs and will not prevent Ukraine from running out of ammunition.