European Union member states are set to reach an agreement that aims to provide Ukraine with 1 million rounds of artillery ammunition over the next year.
(Bloomberg) — European Union member states are set to reach an agreement that aims to provide Ukraine with 1 million rounds of artillery ammunition over the next year.
The EU’s foreign and defense ministers are expected on Monday to back spending €1 billion ($1.1 billion) from its European Peace Facility for the bloc’s countries to jointly buy ammunition, according to people familiar with the matter. They will also back spending another €1 billion from the same fund to reimburse what member states send from their own existing stockpiles of both modern and Soviet-era ammunition to Ukraine.
Speaking to reporters ahead of the Brussels meeting, the EU’s foreign policy chief Josep Borrell said he hoped the ministers would finish the agreement today, adding “otherwise we’ll be in difficulties to continue supplying arms to Ukraine.” Finnish Foreign Minister Pekka Haavisto said a solution would be found on Monday on support to Ukraine.
Asked about producing 1 million shells over the next 12 months, Lithuanian Foreign Minister Gabrielius Landsbergis said this was “an ambition and I’m hoping that it can be delivered and it can be produced.” He added that “speed is of the essence” with Ukraine in urgent need of the shells at the front.
Read More: Putin’s Invasion Shows World’s War Machine Needs More Ammunition
At issue is the need to supply Ukraine with more ammunition but also replenish member states’ existing stocks, as Ukrainian and Russian forces burn through tens of thousands of artillery shells each day and push ahead with offensives. Estonia tabled a proposal last month after Ukraine called for 1 million rounds of 155 mm ammunition this year to aid those efforts.
While Ukraine is firing ammunition at a more efficient rate, it’s still using up shells faster than Europe can produce them. Some estimates show Ukraine using as much as eight times the 25,000 shells Europe currently produces in a month.
Under the EU plan, the joint orders will be funneled either through a procurement project led by the European Defense Agency or by individual EU nations bringing several other member states on board onto their contracts, said the people, who spoke on the condition of anonymity. Up to 60% of those orders that get delivered to Ukraine could then be reimbursed by the EPF.
Draft Conclusions
Borrell said 15 member states have already joined the EDA project to procure ammunition for Ukraine.
A draft of conclusions due to be agreed by EU leaders when they meet in Brussels later this week also included the target to provide Ukraine with 1 million rounds of shells over the next 12 months, according to a document seen by Bloomberg. The draft could still change before leaders sign off on it.
Beyond the political agreement this week, some questions remain open. For starters, the volume of the much-needed 155mm ammunition that is available in existing stocks is still not clear.
Non-EU Suppliers
Another issue is whether purchasing efforts should focus on European firms only or whether they should be open to non-EU suppliers, the people said. There are some 15 manufacturers of 155mm shells in the EU spread across 11 countries.
While the procurement project led by the European Defense Agency would be restricted to the EU and Norway, some countries are pushing for the possibility to buy abroad when procuring as a small group of nations if Europe doesn’t have enough production capacity to meet its target.
Member states have also been informed that one issue the industry faces is sourcing enough gunpowder as it is only available in a small number of countries, said one of the people.
EU countries are also discussing options to unlock another 3.5 billion euros for the EPF, but many countries have questions about how it would be used. The EPF, which reimburses member states for their weapons deliveries to Ukraine and funds other projects, currently has a budget of around €7.7 billion, with much of it already pledged to support Kyiv.
European Council President Charles Michel is consulting leaders about topping up the fund to gauge whether that can be concluded at the summit this week, an EU official said.
–With assistance from Jorge Valero, Lyubov Pronina and Katharina Rosskopf.
(Updates with Borrell, foreign ministers comments from third paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.