European Union foreign policy chief Josep Borrell on Wednesday proposed adding 3.5 billion euros ($3.85 billion) to a fund used to fund military aid to Ukraine . This was reported by European Union sources.
Interlocutors who spoke to Reuters on condition of anonymity said Borrell had asked EU governments to raise the funding cap for the European Peace Fund (EPF). From this fund, Ukraine has already received about 4.6 billion euros in security aid.
Borrell’s proposal requires the approval of national governments in EU countries. Last December, they agreed that “if necessary” such an increase could be justified.
The fund, created in 2021, was designed to help developing countries buy military equipment. However, the European Union quickly decided to use it to deliver weapons to Ukraine, which is fighting a Russian invasion.
The fund is not linked to the EU budget, since current legislation does not allow military operations to be financed from the bloc’s common treasury. It is funded by all EU member states, which have come together to help Ukraine, which is at war with Russia. The move was historic for the bloc, which had avoided getting involved in defense and military operations for decades.
The protracted war led to a much faster depletion of the fund. Initially, its budget was 5 billion euros, and this amount should have sufficed until 2027. This ceiling has already been raised once, by 2 billion euros, last December.
The Fund allows EU countries that supply arms and ammunition to Ukraine to demand reimbursement of part of the cost of the supplies. European states contribute to the fund according to the size of their economies.
An EU source said Borrell decided to apply for a higher funding cap as funds in the fund are already running low and the EU external service wants to ensure EPF has enough cash. to finance security aid not only to Ukraine but also to other countries. .
“The concept of the European Peace Fund…has a universal character. It was not originally designed for Ukraine. It was created in case of any conflict that the European Union might face,” the source added.
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