Lithuania yet to decide how to contribute to EU's new EUR 5 b Ukraine aid fund

  • 2024-04-08
  • BNS/TBT Staff

VILNIUS – Lithuania is still deciding how to contribute to the EU's recently agreed 5-billion-euro Ukraine Assistance Fund.

The EU agreed in mid-March to create the fund as part of the bloc's off-budget European Peace Facility (EPF), which is used to partially reimburse member countries for the weapons they provide to Ukraine.

Countries can either contribute cash to the fund or offset part of their bilateral arms shipments to Ukraine. However, less than half of the value of such aid can count as "in-kind contributions". 

Germany is planning to apply this way of financing. Berlin, which has to contribute around 1.2 billion euros to the fund, has committed to provide 7 billion euros in military aid to Ukraine this year alone.

BNS estimates that Lithuania has to chip in 21.3 million euros. However, the Defense Ministry has told BNS that Vilnius has not yet decided how it will contribute to the fund.

"The Council's decision has an impact on financial calculations from 2025 onwards; the EPF working groups have yet to agree on the modalities. (...) Lithuania has not yet decided on its financial contribution to the EPF and the possible offsetting of this contribution," it said in a comment.

So far, the EPF has paid out 6.1 billion euros to its member countries for aid to Ukraine.