EU Backs €5B Funding Increase for Ukraine’s Defense

The European Union has agreed to replenish the fund used to help strengthen Ukrainian defense by EUR5 billion. The Financial Times reported that on March 13, 2024, EU countries may agree to increase funding for the European Peace Facility by EUR5 billion. This fund is used to finance military supplies to Ukraine.

The approval of the new tranche to the fund is to take place at a meeting of ambassadors of the member states. It remains unclear from the EUR5 billion total how much will be allocated specifically for military aid to Kyiv. It is envisaged that priority will be given to the purchase of European-made weapons, although weapons from third countries are not excluded if they are the only option.

Since 2022, the EU has been providing military assistance to Ukraine through the European Peace Fund, which reimburses member states for weapons provided to Ukraine. In particular, the fund allows the EU to finance actions aimed at strengthening the capacity of non-EU countries. Funding is provided through tranches that can be blocked by individual member states.

In recent months, this has been done by Hungary, which has refused to approve the replenishment of the fund by EUR500 million under various pretexts.

At the same time, EU member states are negotiating the creation of a four-year special fund under the European Peace Facility totaling EUR20 billion, which would be used exclusively to help Ukraine.

As previously reported, in March 2024, Ukraine became part of the European Defense Industrial Strategy, which the European Commission presented.