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According to officials, the European Union is developing a proposal for a $22 billion fund aimed at bolstering Ukraine’s defense capabilities against Russian invasion.

Josep Borrell, the EU’s foreign policy chief, laid out the four-year plan during a meeting with EU foreign ministers in Brussels. After the session, Borrell emphasized the EU’s commitment to ensuring Ukraine’s security and resilience. He said, “We propose the creation of a dedicated section on the European peace facility to provide up to five billion euros a year for the next four years for the defense needs of Ukraine.” This move came in response to international efforts to provide Ukraine with long-term security assurances, which were discussed at the recent NATO summit in Lithuania.

While the NATO leaders agreed that Ukraine should eventually become part of the military alliance, no immediate invitation was extended. This was a disappointment for Ukraine, whose officials were hoping for a concrete membership timeline. To address their disappointment, Western officials stressed that a comprehensive package of support proposals was in the works, aimed at giving Ukraine a military edge over Russia. The fund plan was shared with EU foreign ministers, with a more in-depth discussion set to take place at the end of August in Toledo, Spain.

However, the proposal faces potential opposition from member states such as Hungary. Final approval will likely be postponed until the EU summits later in the year. Hungary has already stalled the disbursement of $556 million in current European Peace Facility (EPF) funds earmarked for Ukraine. The funds have been held up due to demands that the Hungarian bank OTP first be removed from a Ukrainian blacklist. Hungary’s Foreign Minister, Peter Szijjarto, reaffirmed his country’s stance, stating, “Neither for the $500 million blocked so far, nor for the $20 billion now proposed, are we willing to engage in any kind of negotiations as long as OTP is on this list.”


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