The EPF had been considered vital in the effort to replace waning American aid for Ukraine. Kyiv has warned it is losing ground to the Russians while a small group of Republican politicians refuse to back a planned $60 billion aid package from Washington.
As an agreement was reached in Brussels on Wednesday, Josep Borrell, the EU’s top foreign diplomat, said: “We made it. The message is clear – we will support Ukraine with whatever it takes to prevail.”
But it later emerged the €5 billion fund would not contain any new funds from member states to purchase weapons. Instead, European capitals will be able to write off “in-kind contributions” to the EPF against donations already made for Kyiv.
Instead, European capitals will be able to write off “in-kind contributions” to the EPF against donations already made for Kyiv. The fund is designed to reimburse EU states back 50 per cent of their donations to Ukraine.
Germany has already promised enough bilateral aid to make up for its €1.25 billion contribution to the pot. The Telegraph last year reported that Berlin was seeking to reduce the amount it gave to the fund – some 25 per cent of the overall scheme – because it was annoyed with other European allies, mainly France, not stepping up to match its increased support for Kyiv.
Without Germany’s commitment, there will be less cash for smaller member states that rely on support from Brussels to donate from their weapons and ammunition stockpiles. Other countries will also be able to follow suit if they are unwilling to commit extra funds to the EU scheme.
A deal on the scheme was also only made possible after France compromised on a long-held demand that the cash could only be used to reimburse for EU-made equipment.
Instead, EU states agreed that short-term purchases from third countries should be allowed to meet Ukraine’s urgent need for arms and ammunition.
