EU suggests €40 billion voluntary fund for Ukraine's military needs

The European Union has proposed the establishment of a new EU fund to send between €20 billion and €40 billion worth of military aid to Ukraine, including 2 million rounds of ammunition, with participation based on voluntary involvement to avoid any veto from Hungary.

Last month, the EU’s diplomatic arm suggested creating an EU-level scheme to send 1.5 million rounds of ammunition to Ukraine. However, the initial proposal lacked specific funding figures. Due to Hungary's consistent opposition to any EU initiative supporting Ukraine, whether militarily or non-militarily, the proposal was revised to ensure "participating member states" could opt in.

The updated proposal, seen by Euractiv, suggests that EU countries "are encouraged to deliver military support to Ukraine in 2025, with a provisional value of at least €20 billion, potentially reaching up to €40 billion depending on Ukrainian needs." As a starting point, the plan calls for an agreement to allocate €5 billion to provide 2 million rounds of large-calibre artillery ammunition in 2025.

The funding model will be based on each country's economic capacity, with contributions made either in cash or directly in kind. The EU itself plans to count the €1.9 billion from its windfall profits from Russian frozen assets as its contribution, even though these funds have already been partly disbursed.

The proposal emphasizes several military priorities, including large-calibre artillery ammunition, air defense systems, missiles, drones, and fighter jets. Additionally, support for the regeneration of Ukrainian brigades, including equipment maintenance and non-lethal assistance, will be part of the scheme.

The plan also includes "member states' contributions to security guarantees for Ukraine," although no further details have been provided. Any other military support deemed a priority by Ukraine will be counted under the initiative as well.

The updated proposal was shared with EU countries on Thursday, ahead of a foreign ministers' meeting scheduled for Monday. European leaders will also convene in a summit next week to discuss further aid to Ukraine and enhancing defence capabilities.

Countries interested in joining the scheme must express their intention by April 30. In addition, the EU executive will unveil details of a plan next week to free up €800 billion for joint procurement of European defence equipment and to boost industry production.

The White Paper on the future of European defence, which highlights critical capability gaps, will also push for the creation of a single market for defence, as Europe faces pressure from its long-term ally, the United States, to strengthen its defence posture.

While the US continues to advocate for a swift resolution to the war, European countries have consistently pledged to maintain arms supplies to Ukraine. Their goal is to help Ukraine regain territory from Russia, secure a strong position in future negotiations, and ensure the country’s long-term defence capabilities.

By Tamilla Hasanova