France, backed by Cyprus, held up an agreement by insisting that the fund be used to reimburse only EU-made equipment — part of its effort to boost the bloc’s arms industry. Nordic and Baltic countries, as well the Netherlands and Italy, argued that Ukraine’s desperate need for arms and ammunition meant there should be some flexibility for a “Buy European” provision.
The final deal foresees that, in the medium term, joint procurement from within the bloc would become the norm but there would be flexibility in the interim period. The text, seen by POLITICO, does not set an end date for the interim period. That’s crucial for efforts like the one being led by the Czech Republic to buy 800,000 artillery shells from outside the EU to rapidly send to Ukraine.
“After months of diplomatic tug-of-war, we can finally give a much needed boost to military aid to Ukraine, with enough flexibility to send them what they need, when they need it” said an EU diplomat
Getting an agreement also meant figuring a way around resistance from Hungary — the EU’s most pro-Russia member.
Hungary agreed to use constructive abstention — meaning sitting out the final vote so that the measure isn’t blocked — which allowed the Ukraine Assistance Fund to be created. Despite that, Budapest is still blocking €500 million of EPF reimbursements.
The formal adoption of the measure will take place at a meeting of EU foreign ministers on Monday, said the Belgian Council presidency.
