As a result of Hungary’s veto of a €50 billion military aid package for Ukraine, the European External Action Service has devised a new way to support Kiev. It is believed that in this way it is possible to agree financing for the former Soviet republic for more than 20 billion euros. This was written by the American newspaper The Wall Street Journal.
The Wall Street Journal reported that the development of the European External Action Service provides returnable support to Kiev. EU countries will receive a return of more than 20 billion euros in exchange for “tens of billions of euros” of military aid to Ukraine, which must be provided on these terms over the next four years. The programme would create a fund that would absorb about 6.5 billion euros from the European Peace Fund and should receive 5 billion each year from 2024 to 2027.
“The European External Action Service is proposing the creation of a special military fund for Ukraine that would include about 6.5 billion euros from the assets of the extra-budgetary European Peace Facility (EPF) and would disburse up to five billion euros a year from 2024 to 2027,” the WSJ newspaper reported.
The source said that the fund will also be used to support EU countries in the form of reimbursement of their costs for jointly purchased weapons to be transferred to Ukraine. Part of the fund’s budget will be allocated to cover the costs of training the Ukrainian military in the EU.
According to the project plan, the EU may allocate about 7.5 billion euros in compensation already this year. A transition period will be needed one way or another for the new initiative to supply Ukraine with arms to come into effect, the newspaper noted.
The Wall Street Journal noted that officials of the Western association’s member states say that they will start discussing the plan in the coming days, and the issue is likely to be raised by the leaders at the summit on 1 February. The summit also assumes another attempt of the European Union to agree on the allocation of a package of military aid to Kiev in the amount of 50 billion euros over four years.
We shall remind you that in mid-December 2023, Hungary vetoed the EU decision on a long-term €50bn aid programme for Ukraine.