The European Union reached an agreement to send 1 million rounds of 155 mm calibre ammunition to Ukraine over the next year. The agreement will take ammunition from EU member states’ stockpiles and from joint acquisitions, pacing the way for more European integration in defence procurement.
The ammunition will come from a 2 billion euro plan proposed by EU foreign policy head Josep Borell. His proposal is for 1 billion euro on shells from stockpiles and 1 billion euro in joint procurement. The plan was approved during a meeting of EU foreign and defence ministers in Brussels on March 20.
The EU is still working on hammering down details, but Estonian Defence Minister Hanno Pevkur was positive about the decision, adding that “it is most important that we conclude these negotiations and it shows me one thing: If there is a will, there is a way.” Estonia was one of the countries pushing for the plan.
There was some divisions on the joint procurement sourcing, as some EU governments were supporting procurement from different countries in order to send munitions faster to Ukraine. In the end, the plan will supply munitions only from companies based in the EU and Norway, as a way to channel EU money to EU companies.
Terms for the joint procurement were set in a project arrangement deal between a group of 17 EU countries and Norway. The arrangement includes terms for the 155 mm ammunition and other future acquisition of ammunition. The European Defence Agency will supervise the joint procurement, a step towards more integration that should lead to cost reduction via economies of scale.
The 2 billion euro of funding for ammunition will come from the European Peace Facility. The fund partially reimburses EU countries for military aid, with around 3.6 billion euros already reimbursed for ammunition and other military items sent to Ukraine.
