The European Union’s High Representative for Foreign Affairs and Security Policy, Josep Borrell, has described as “shameful” Hungary’s blocking of the ‘European Peace Facility’ (EPF) for Ukraine for more than a year.
“Most Member States insisted [at the Foreign Affairs Council, ed.] that the blockage be lifted and that progress be made on the assistance fund for Ukraine. It’s been blocked for over a year. This is unacceptable”, he explained at the end of the ministerial meeting. “I have given up hope that we will be able to release the ‘Peace Facility’. It’s shameful”, he added.
While this situation does not prevent the EU from providing military support to Ukraine, it does block the reimbursement of €6.6 billion to the Member States. According to Mr Borrell, if they are not reimbursed for what they have provided in the country, “there is little incentive to continue in the future”.
Conversely, the first windfall profits generated by the Bank of Russia’s assets tied up in the EU, i.e. €1.4 billion (see EUROPE 13438/1), should be paid to the EPF next week, at the beginning of August. According to the High Representative, the funds will be used to supply ammunition and air defence systems to Ukraine, as well as for procurement for the Ukrainian defence industry.
Once again, Mr Borrell called for everything possible to be done in terms of anti-aircraft defence to help Ukraine, which is still under heavy attack from Russia. With 70% of electricity infrastructure reported to have been destroyed or damaged, he also called on Member States to provide more support to rebuild and replace the electricity network in order to ensure more electricity production. According to the High Representative, the next 2 to 3 months will be critical in preventing Ukraine from spending the winter in the dark and cold.
At her lunch with the ministers, the President of the European Investment Bank (EIB), Nadia Calviño, announced €450 million in loans for energy investment, including the reconstruction of damaged hydroelectric power stations and electricity network infrastructure, and the restoration of district heating networks in Ukrainian cities. An additional €86 million will be paid to Ukraine’s national grid operator, Ukrenergo, to build anti-drone shelters for power stations. These measures are designed to strengthen the resilience of the Ukrainian energy system during the next heating season.
Czech initiative to speed up ammunition deliveries
Ahead of the EU Council, Czech Minister Jan Lipavský spoke to a number of journalists, including Agence Europe, about his country’s initiative to speed up the supply of munitions to Ukraine.
“We have secured funding for the purchase of half a million rounds of large-calibre ammunition, which we will deliver by the end of this year. The first 45,000 shells arrived in Ukraine in June”, he added. According to him, a further 100,000 pieces will be sent out in July and August. “From September, these deliveries will accelerate, but we are also looking for money to buy more munitions so that the initiative can continue in 2025. We can deliver up to 800,000 shells by the end of this year if we find the money”, insisted the Minister.
The equipment comes from all over the world, according to the Czech government’s coordinator for the reconstruction of Ukraine, Tomáš Kopečný.
Eighteen EU and NATO countries are contributing to the initiative, fifteen of which have already made financial contributions. The Czech Republic has earmarked €35 million for this, according to the minister. Each country chooses what type of equipment it sends to Ukraine.
The initiative is “complementary to the EPF, there is no need, no time and no desire to duplicate a mechanism already in place, but the initiative does what the EPF cannot do”, said Mr Kopečný.
Renewal of European economic sanctions
While several ministers have called for work on a 15th package of sanctions against Russia, on Monday the EU Council renewed the EU’s economic sanctions for a further 6 months, until 31 January 2025. These sanctions, first introduced in 2014, have been significantly tightened since the Russian military invasion of February 2022 and regularly renewed every 6 months for the past 10 years. (Original version in French by Camille-Cerise Gessant)