(1)

In its conclusions of 29 and 30 June 2023, the European Council stated the Union’s readiness to provide sustainable military support to Ukraine for as long as it takes, notably through the EU Military Assistance Mission in support of Ukraine (EUMAM Ukraine) and the European Peace Facility (the ‘Facility’) as part of the Union’s overall efforts to contribute, together with partners, to future security commitments to Ukraine, which will help Ukraine defend itself in the long term.

(2)

In its conclusions of 26 and 27 October 2023, the European Council reconfirmed that military support to Ukraine is to continue, notably through the Facility and EUMAM Ukraine, as well as through bilateral assistance by Member States. The European Council underlined the importance of Member States’ efforts and, in the immediate term, the need to accelerate the delivery of military support to Ukraine to help meet its pressing military and defence needs, including missiles and ammunition, notably under the one million rounds of artillery ammunition initiative, as well as air defence systems to protect its people and its critical and energy infrastructure. In the longer term, the Union and its Member States are to contribute, together with partners, to future security commitments to Ukraine, which will help Ukraine defend itself, resist destabilisation efforts and deter acts of aggression in the future.

(3)

In its conclusions of 14 and 15 December 2023, the European Council concluded that the Union and its Member States will continue to address Ukraine’s pressing military and defence needs. In particular, the European Council insisted on the importance of timely, predictable and sustainable military support for Ukraine, notably through the Facility and EUMAM Ukraine, as well as through direct bilateral assistance by Member States. The European Council invited the Council to intensify work on the reform of the Facility and the further increase of its financing, building on a proposal of the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’).

(4)

In its conclusions of 1 February 2024, the European Council reviewed work in the Council on military support for Ukraine under the Facility and the proposed increase of its overall financial ceiling. The European Council invited the Council to reach agreement by early March 2024 to amend Council Decision (CFSP) 2021/509 (1) on the basis of a proposal of the High Representative for a Ukraine Assistance Fund and the proposed key modalities, taking into account suggestions by the Member States.

(5)

The financial ceiling of the Facility should therefore be increased by an amount of EUR 5 000 million (in current prices) dedicated to continuing to address the needs of the Ukrainian Armed Forces through support for the provision of both lethal and non-lethal military support and training (the ‘dedicated amount’).

(6)

Prior to the adoption of this Decision, strategic orientation for the dedicated amount was provided, in line with Article 9 of Decision (CFSP) 2021/509. The Facility Committee established under Article 11 of Decision (CFSP) 2021/509 is to decide on the use of the dedicated amount, pursuant to Article 2(3) of that Decision, no later than one month after the adoption of this Decision.

(7)

The implementation of the increased financial ceiling of the Facility should respect the ceiling for payments agreed for 2024 and be articulated in a manner that is consistent with the key elements and modalities outlined in Recitals 8 to 14 of this Decision.

(8)

Military support to Ukraine under the dedicated amount should continue to be driven by the evolving needs of the Ukrainian Armed Forces, seeking to maximise the EU’s added value and complementing bilateral efforts, and should be articulated through a more structured, efficient and pragmatic approach, making use of increased joint procurement from the European defence industry (and Norway).

(9)

The increased joint procurement to meet Ukraine’s needs under the dedicated amount should draw, inter alia, on the lessons learned from the three-track ammunition initiative, including the importance of taking advantage of well-functioning national procurement structures as well as existing framework contracts, leveraging both a lead nation approach and the European Defence Agency (EDA), and including the joint procurement of the required defence equipment from the European defence industry and Norway, including small and medium sized enterprises, while allowing for flexibility in supply chains which may include operators established or having their production outside of the Union or Norway. The necessary provisions will be set out in individual assistance measures for joint procurement from the European defence industry (and Norway), taking into account the capability coalitions under the Ukraine Defence Contact Group (UDCG), and in accordance with the implementing rules of the Facility. Initiatives that bring together European and Ukrainian defence industry partners, including through joint ventures, should be promoted, taking into account the security and defence interests of the Union and its Member States.

(10)

The reimbursement of Member States’ other deliveries from stocks, unilateral and joint purchases of equipment available in the market, and unilateral procurement under the dedicated amount should be limited after a transition period, subject to assessment in the Facility Committee and taking into account Ukraine’s priority military needs, once the dedicated amount is nearing depletion. Those deliveries will continue to be eligible until a date to be determined by the Council pursuant to Article 2(4) of Council Decisions (CFSP) 2022/338 (2) and (CFSP) 2022/339 (3), taking into account Ukraine’s priority military needs. During the above-mentioned transition period, Member States’ deliveries from joint procurement concluded in the framework of the capability coalitions under the Ukraine Defence Contact Group (UDCG), should give priority to the European defence industry (and Norway), while, exceptionally, allowing for flexibility in cases where it cannot deliver within a timeframe compatible with Ukrainian needs, in accordance with the implementing rules of the Facility.

(11)

Military support under the dedicated amount should ensure the continuation of ‘train and equip’ provided through EUMAM Ukraine, in line with the evolving training needs of the Ukrainian Armed Forces.

(12)

Governance arrangements should be improved in the implementation of the dedicated amount, inter alia, through a revised valuation methodology, to be agreed by the Facility Committee, for Member States’ deliveries from stocks from 18 March 2024, through the establishment of a fixed reimbursement rate, and by making use of the possibility to offset the value of the reimbursement to be received for the support delivered in-kind (4) under the Facility by a Member State against its ordinary financial contributions due in the same year, in accordance with the implementing rules of the Facility and the principle of sound financial management. Offsetting applied to one Member State does not affect other Member States’ contributions or the liquidity of the Facility.

(13)

Military support will be provided in full respect for the security and defence policy of certain Member States, ensuring the transparency and traceability of Facility-funded support, and taking into account the security and defence interests of all Member States.

(14)

Exceptionally, where a Member State has made a formal declaration under the second subparagraph of Article 31(1) TEU and has abstained from the adoption of an assistance measure to be financed with this dedicated amount, that Member State should not contribute to the costs of that measure. Instead, that Member State should contribute an additional amount to other assistance measures.

(15)

Further comparable annual increases could be envisaged until 2027, based on Ukrainian needs and subject to political guidance by the Council.

(16)

Decision (CFSP) 2021/509 should therefore be amended accordingly,

(1)

in Article 2, paragraph 1 is replaced by the following:

(2)

in Article 73, paragraph 10 is replaced by the following:

(3)

Annex I is replaced by the following: