EU agreement on ammunition purchase for Ukraine

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Thousands of shots are fired every day in the war of attrition, causing an acute shortage of ammunition in Ukraine. Brussels quickly agreed on the necessity and logic of helping Kyiv with this as well. But in practice it turned out to be not so easy

So the question was on the table who will buy the ammunition. Will the EU organize joint procurement through the European Defense Agency, which is headed by EU Foreign Affairs Chief Josep Borrell? After all, during the pandemic, the EU also jointly purchased vaccines in order to quickly obtain large quantities at a favorable price. But more Brussels power in the field of defense is a sensitive issue. Another option is for countries to form purchasing combinations with each other.

Long-term contracts

In practice, both paths will now be followed. For example, Germany has opened multi-year contracts with the defense industry to other countries. In principle, Denmark and the Netherlands want to join this. Seventeen Member States and Norway also decided to jointly procure through the Defense Agency. It is the first time that EU countries are purchasing ammunition together. Joint purchasing means that economies of scale can be achieved.

“It is a dire necessity,” said Minister Kajsa Ollongren (Defense, D66). “Ukraine badly needs the ammunition. The war is still going on. Ukraine cannot win this war without European support.”

It’s a dire necessity

Kaysa Ollongren Minister of Defence

Another tricky issue: some countries, such as France, insisted that orders go to European companies. But that could delay the purchase. Another group of countries, including the Netherlands, considered speed more important than origin. The joint purchase via the Brussels agency, it has now been agreed, will initially be arranged in the EU or Norway.

Countries that supply ammunition to Ukraine are reimbursed 50 to 60 percent of the costs by the EU. The money for the ammunition comes from the European Peace Facility. This is a fund that is outside the EU budget because the European treaties prohibit arms transfers. If 2 billion euros are used for the purchase of ammunition, the fund will be empty at the end of this year. The countries then have to decide on a supplement.