EU Confirms €5 Billion Boost for Ukraine's Military Aid Reserve

On 13 March, EU member states reached a consensus to inject an additional five billion euros ($5.5 billion) into a central fund designated for providing weaponry to Ukraine. This decision offers a significant uplift for Kyiv, particularly as backing from its primary supporter, the United States, appears uncertain, while its under-equipped forces grapple with repelling Russian advances.

Belgium, currently holding the EU's rotating presidency, announced that ambassadors from the bloc's 27 nations had tentatively agreed on the proposal to bolster arms provisions to Kyiv in 2024 with a five-billion-euro allocation.

Following Moscow's invasion in 2022, the European Union made history by endorsing the funding of arms deliveries to a nation embroiled in conflict for the first time.

Subsequently, it has allocated 6.1 billion euros from its central European Peace Facility, primarily aimed at reimbursing a portion of the expenses incurred by member states in supplying arms to Ukraine.

The initiative to augment the EU fund by an additional five billion euros faced months of delay due to disagreements, particularly from Germany and France.

Berlin insisted that its direct assistance to Ukraine should be factored into its contribution, while Paris advocated for reimbursement exclusively for weapons manufactured within Europe.

According to diplomats, Germany, the primary contributor to the fund, reached a compromise with Brussels, allowing a portion of its bilateral assistance to be deducted from its contribution to the fund.

Similarly, diplomats noted France's contentment with the assurance that member states would give preference to procurement from European defence manufacturers. However, they retained the flexibility to explore options outside the EU in cases where specific ammunition or systems were not readily accessible.

Since the Kremlin initiated its full-scale conflict, Brussels reports that approximately 28 billion euros have been expended from both member states and EU resources to bolster Ukraine's military efforts.

Amidst pressing ammunition shortages along the front lines, Ukraine receives fresh funding. The United States announced a $300 million weapons package for Ukraine, yet an additional $60 billion remains stalled in Congress due to Republican opposition.

Europe faces mounting warnings that inadequate support for Kyiv could result in its defeat, potentially emboldening further aggression from the Kremlin.

Efforts to enhance weapons and ammunition production within the EU defence industry are underway, but progress remains slow two years into the conflict. Despite a commitment made a year ago, the bloc will likely fall short of supplying Ukraine with a million artillery shells by this month.

In response, the Czech Republic has led an 18-nation coalition to procure artillery shells from outside Europe, with plans to deliver 300,000 shells to Kyiv in the coming weeks.

Meanwhile, Russia has intensified arms production, mobilising its economy for war and receiving significant weapon shipments from Iran and North Korea.