That’s according to an EEAS document reviewed by Bloomberg, Ukrinform reports.
It is noted that the Fund's annual budget will stand at about EUR 5 billion ($5.4 billion). The size has been increased several times because the decision on the allocation and transfer of funds requires unanimous support.
EU countries also argued about the amount of compensation and the use of the Fund to compensate for acquisitions. Diplomats from several countries, including Germany, have suggested that the European Peace Fund (EPF) in its current form is becoming less effective, as most of the future supply will come from new weapons purchases, rather than from stocks.
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Under the current facility, EU member states are reimbursed for the weapons they donate to Ukraine.
The proposal put forward by the EEAS aims to reconcile different positions by changing the management of the Fund, fixing the amount of compensation, and providing a higher bonus for joint initiatives between European and Ukrainian industries. Reimbursements for deliveries from stocks and unilateral purchases shall be gradually abolished, the project suggests.
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The Fund will have two main pillars that will be supported through the EPF: lethal and non-lethal aid to Ukraine through joint procurement from the EU defense industry, as well as continued training and equipping of Ukrainian forces.
The EEAS envisages that the Fund will meet Ukraine's most urgent needs in terms of artillery, ammunition, drones, and air defense capabilities, as well as demining, military medical support, and cyber security.
The document urges parties to reach as soon as possible a political agreement on the set goal, which is to increase the EPF financing cap by EUR 5 billion, specially designated for Ukraine.
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Further comparable annual increases may be foreseen until 2027, based on Ukraine's needs and subject to political leadership from member states, the document adds.
Since Russia's full-scale invasion of Ukraine nearly two years ago, seven packages totaling EUR 3.5 billion have been approved, as well as EUR 2 billion for ammunition supplies.
As Ukrinform reported earlier, battlefield developments in Ukraine and continued financial and defense assistance to the nation in its fight against Russian aggression will be on top agenda of the upcoming EU foreign affairs ministerial, set to be held in Brussels on January 22.
