The European Union may divide the withdrawn annual aid project for Ukraine into parts, focusing on the supply of two million artillery shells.

Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, stated this at the EU summit in Brussels.

The €20-40 billion emergency support package for Ukraine, which would have been voluntary and funded by EU member states, was withdrawn due to problems with the budget deficits of some countries.

The initiative has partially stalled, as major donor countries such as France, Spain, and Italy have not supported it. However, Kallas shared that it can still be implemented by dividing the aid package into parts and approaching it gradually.

“It is important to have tangible results. If we are not able to decide right now for the whole year that is coming, let’s decide in the short term what the imminent needs that Ukraine has regarding the ammunition are,” the European Pravda publication quoted Kallas as saying.

“The realistic plan would be EUR 5 billion for ammunition. This is what we are working on really right now,” she said, referring to the project to supply 2 million large-caliber shells to Ukraine.

Creating a 20-40 billion military assistance fund with voluntary contributions from European countries in proportion to their GDP was proposed as an alternative mechanism for allocating funds that excluded the possibility of Hungary’s veto.

In the future, the problem of the budget deficit, which has become an obstacle to filling the fund, should be solved by the ReArm Europe/Readiness 2030 project presented by the European Commission. It proposes a €150 billion loan instrument that will make it possible to issue loans to implement national defense projects.

These include air defense systems, artillery systems, missiles and ammunition, drones and anti-drone systems, and joint arms procurement.

Ursula von der Leyen noted that these weapons will also help European countries increase their support for Ukraine. In addition, joint procurement will also reduce costs.

Ukraine will also be able to join the joint procurement, and the project will help open up procurement of defense products from Ukrainian manufacturers.

It is also expected to attract private capital by expanding the investment market and through the European Investment Bank.