EU plan for Ukraine ammunition hits legal snag over arms contracts profits

New Delhi: Two weeks after the EU announced a historic agreement to deliver 2 billion euros ($2.14 billion) worth of ammunitions to Ukraine, the bloc is still sorting out the legal specifics over who will pocket the profits.

EU ambassadors met Wednesday to discuss the issue but were unable to make significant progress on one of the key issues.

The bone of contention remains whether these arms contracts will go exclusively to EU companies (and how to legally define them), or also be open to outside manufacturers, according to a Politico report.

France is pushing for the money to stay within EU borders, reported Politico, citing several diplomats. And Greece and Cyprus back Paris in a move that some of the diplomats said is linked to their desire to avoid contracts going to Turkish manufacturers.

With the issue stalled, ambassadors on Wednesday instead focused on finalising a less-controversial part of the agreement: A deal to donate large swaths of ammunition to Kyiv.

Ambassadors completed a deal on the donation plan during the meeting, adding that the legal text is expected to be officially published next week, Politico quoted diplomats as saying.

EU’s $2.14 billion Ukraine plan

On 20 March, European Union foreign ministers had agreed to a 2 billion-euro ($2.14 billion) plan to raid their stockpiles and jointly purchase desperately needed artillery shells for Ukraine.

As part of the plan, the 27-nation bloc decided to supply 1 million rounds to Ukraine over the next 12 months.

Kyiv has complained that its forces are having to ration firepower as Russia’s yearlong invasion has turned into a grinding war of attrition.

Ukraine told the EU that it requires 350,000 shells a month to help its troops hold back Moscow’s onslaught and allow them to launch fresh counteroffensives later in the year.

Compensating EU members

A package of one billion euros was earmarked for compensating EU members who would dip into their own stockpiles, and another billion for getting new shells made by military contractors, with orders organised and fast-tracked by the EU Defence Agency.

EU foreign policy chief Josep Borrell had proposed the ammunition plan, arguing in February that it was the most important issue. “If we fail on that, the result of the war is in danger,” he said at the time.

The US, EU and NATO have all insisted they were not participants in the conflict, while also arguing that Ukraine must win and Russia “must lose.”

Moscow has repeatedly warned the West to stop “stuffing” Kiev with arms and ammunition, arguing that they are only delaying the inevitable while risking open confrontation.

Russia has already increased its own ammunition production, tripling the number of shells the US and EU plan to supply Kiev over a year-long period, President Vladimir Putin said last week.

With inputs from agencies

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