(1)

In its conclusions of 22 March 2024, the European Council stated that given the urgency of the situation, the European Union is determined to continue providing Ukraine and its people all the necessary political, financial, economic, humanitarian, military and diplomatic support for as long as it takes and as intensely as needed.

(2)

On 21 May 2024, the Council adopted Decision (CFSP) 2024/1470 (1), which amended Decision 2014/512/CFSP (2) in order to provide that central securities depositories within the meaning of Regulation (EU) No 909/2014 of the European Parliament and of the Council (3) (‘central securities depositories’) holding assets and reserves with a total value of more than EUR 1 million are to contribute from their extraordinary net profits arising from the immobilisation of Russian assets a financial contribution equivalent to 99,7 % of those net profits accumulating since 15 February 2024. Payments should be made in biannual instalments until the extraordinary profits cease accumulating on the balance sheets of central securities depositories due to the discontinuation of the restrictive measures prohibiting transactions with the assets and reserves of the Central Bank of Russia. According to that Decision, 90 % of the amounts of the financial contribution paid to the Union are to be used to support Ukraine, through the European Peace Facility established by Council Decision (CFSP) 2021/509 (4) (EPF). As the allocation is to be reviewed yearly and for the first time before 1 January 2025, the percentage of the financial contribution allocated to the EPF may change in the future.

(3)

In order to make use of existing delivery mechanisms, the amounts allocated to the EPF should be allocated to assistance measures for the supply of military support to the Ukrainian Armed Forces in addition to the voluntary contributions referred to in Article 30 of Decision (CFSP) 2021/509. Such amounts allocated should be in addition to the reference amounts agreed for the respective assistance measures. It is appropriate to provide for specific rules for this new funding source, which should complement the existing EPF rules. In particular, the additional contribution need neither be accepted by the Political and Security Committee (PSC) nor be authorised by the EPF Committee; as Decision (CFSP) 2024/1470 already provides for an authorisation directly by the Council, no such additional acceptance procedure is required. Additionally, it is not necessary to conclude administrative arrangements with central securities depositories, as the rules for the contribution are established in this Decision.

(4)

The allocation of amounts to assistance measures in support of Ukraine is without prejudice to the specific character of the security and defence policy of certain Member States and to the position of Member States that have abstained in a vote and made a formal declaration or will abstain in a vote and make a formal declaration in accordance with the second subparagraph of Article 31(1) of the Treaty on European Union (TEU) regarding an assistance measure under the EPF. Those Member States, therefore, continue not to be obliged to apply the decisions regarding EPF assistance measures where they have abstained and made a formal declaration. The second sentence of Article 5(3) of Decision (CFSP) 2021/509 does not apply.

(5)

It is appropriate to provide that administrative costs relating to the management of the amounts should not be borne by the national contributions to the EPF, but are to be covered from those amounts. Military support under the EPF is to be provided in accordance with the relevant regulatory framework, including the EPF implementing rules. Furthermore, any military support under the EPF is to be provided in full respect for the security and defence policy of certain Member States, ensuring the transparency and traceability of EPF-funded support, and taking into account the security and defence interests of all Member States. Moreover, in accordance with Article 73(10) of Decision (CFSP) 2021/509, in cases where a Member State has abstained in a vote and made a formal declaration in accordance with the second subparagraph of Article 31(1) TEU regarding an assistance measure to be financed with the dedicated amount set out in the first subparagraph of Article 73(10) of Decision (CFSP) 2021/509, that Member State does not contribute to the costs of that assistance measure and, in accordance with Article 16(4) of Decision (CFSP) 2021/509, is not a contributing Member State for the purposes of covering the non-contractual liability of the Union stemming from the implementation of an assistance measure adopted under Decision (CFSP) 2021/509. The same applies to a Member State that has abstained and made a formal declaration in accordance with the second subparagraph of Article 31(1) TEU in respect of the assistance measure provided for in Council Decision (CFSP) 2022/338 (5).

(6)

In view of the evolving needs of the Ukrainian Armed Forces and in order to maximise the Union’s added value, the Facility Committee established by Decision (CFSP) 2021/509 should determine and periodically review the allocation of the received amounts between assistance measures in accordance with a dedicated strategic orientation provided by the PSC pursuant to Article 9(2) of Decision (CFSP) 2021/509. The rules laid down in Article 5(5), as well as Article 11(8) and (14) of Decision (CFSP) 2021/509 should apply,