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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Politics

Politics

EU envoys agree on Ukraine ammo purchase.

European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June 5, 2020. REUTERS/Yves Herman/File Photo
European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June... European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June 5, 2020. REUTERS/Yves Herman/File Photo
European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June 5, 2020. REUTERS/Yves Herman/File Photo
European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June... European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June 5, 2020. REUTERS/Yves Herman/File Photo

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On Wednesday, the EU announced intentions to acquire artillery rounds for Ukraine and boost its armaments production.

After weeks of debate that upset Kyiv authorities, EU ambassadors agreed on a 1 billion euro ($1.1 billion) plan to buy weaponry for Ukraine jointly.

Meanwhile, the EU’s executive, the European Commission, proposed spending over 500 million euros to help European arms firms increase capacity by upgrading equipment, opening production lines, and training staff.

We’ll support Ukraine and its people forever. “Ukraine’s brave soldiers need sufficient military equipment to defend their country,” European Commission President Ursula von der Leyen stated.

As Ukrainian and Russian forces fight an attritional war, artillery rounds, especially 155mm shells, are crucial. Officials claim Kyiv uses more ammunition than its allies can provide.

Wednesday’s EU actions are part of a three-track strategy approved by foreign ministers in March to provide 1 million shells and missiles to Ukraine within 12 months.

The first track allocates 1 billion euros to pay EU members for delivering existing armaments.

Officials say it has only produced 40,000 shells, emphasizing the need for the other railroads.

The joint purchasing program, a first for the EU, is the second track. Traditionally, national governments have procured defense.

Governments battled over qualifying standards for weeks, delaying the project.

EU production

Ministers agreed to limit the scheme to EU and Norwegian enterprises. However, diplomats claimed France, a proponent of a bigger EU defense sector with a large arms industry, insisted on European manufacture.

That stance angered eastern and Baltic countries, Germany, and the Netherlands, who argued that European firms would need at least some components outside the EU to make enough shells on time.

Wednesday’s compromise was unknown. However, diplomats said they were working on a document prioritizing European manufacture but may require certain components from elsewhere.

The accord allows officials to sign contracts before the end of May.

The third track, initiated on Wednesday, aims to increase capacity so EU nations can supply more weapons to Ukraine and restock.

“For the EU, this is really breaking new ground,” said European Council on Foreign Relations military specialist Camille Grand.

Grand praised the European Commission for seeking new defense industry boosts. But he said 500 million euros might not make a big difference.

Grand, a former NATO official, said companies must be certain they will obtain enough orders for years to justify capacity expansions.

He said NATO’s efforts to set more ambitious weapons stockpile rules might reassure businesses.

The Commission wants EU countries and the European Parliament to approve its plan by mid-July.


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