European Peace Facility

The European Peace Facility (EPF) is an off-budget European Union financing instrument set up in March 2021 under the leadership of HRVP Josep Borrell, which aims towards the delivery of military aid to partner countries and funds the deployment of EU military missions abroad under the Common Foreign and Security Policy (CFSP). It was allocated with an initial ceiling of €5 billion for the 2021–2027 cycle.

In March 2024 it was replenished by another €5 billion tranche, dedicated Ukraine Assistance Fund within the EPF. A compromise seemed to have been found that would allow the fund to finance a Czech initiative to purchase ammunition from countries outside the EU. As of March 2024, €11.1 billion of EPF funding has been committed for military support to Ukraine.

History
The EPF was first used to support the African Union (€130 million; July 2021), Mozambique (€10 million; November 2021) and Bosnia Herzegovina (€40 million; November 2021).

In February 2022, in the wake of the 2022 Russian invasion of Ukraine, the EU first employed the EPF—breaking a long-standing taboo—to provide weapons to a third country (Ukraine), earmarking a starting tranche of around €500 million, successively increased to €1 billion, €1.5 billion and, tentatively, a pledge was agreed in May 2022 to reach €2 billion with a fourth tranche.

On 20 March 2023, Politico characterized the EPF as "formerly an obscure program that has become the EU’s main wartime vehicle to partially reimburse countries for their weapons donations to Ukraine." On this date a deal was made to supply 1 million rounds of 155 mm caliber ammunition to Ukraine "within the next 12 months".

On 13 April, Borrell said that the Council of the European Union agreed on a €1 billion increase in the EPF "to reimburse member states for ammunition donated to Ukraine from existing stocks or from the reprioritisation of existing orders during the period 9 February to 31 May 2023." To that date, the total EU contribution for Ukraine under the EPF was thus brought to €4.6 billion.

On 5 May 2023, Borrell said that the Council agreed to "finance the provision to the Ukrainian Armed Forces of 155mm-calibre artillery rounds and, if requested, missiles which will be jointly procured by EU member states from the European defence industry." This agreement brought the total Ukraine military support under the EPF to €5.6 billion. The press release said that "The supply chains of these operators may include operators established or having their production outside of the EU or Norway. The measure will also cover deliveries of ammunition and missiles which have undergone an important stage of their manufacturing in the EU or Norway which consists of final assembly."

As of 19 July 2023, €5.6 billion had been allocated for Ukraine under the EPF, and a proposal aims to increase the ceiling to €20 billion for four years.

On 31 January 2024, Borrell disclosed that the European Union would fail to fulfil its pledge to Ukraine, to deliver 1 million 155mm shells by 20 March 2024.