The European Union will appeal to international partners for additional funding for Ukraine, as "the war-torn country risks running out of money in the fifth year of Russia's full-scale invasion," Bloomberg reports, writes UNN.
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EU leaders will call "for intensified engagement with third countries to help close the remaining €30 billion ($34.9 billion) gap" when they gather for a summit in Brussels later this month, according to a draft conclusion seen by Bloomberg.
In December, the bloc agreed to provide Ukraine with €90 billion in loan assistance for this and next year, to be financed through joint borrowing after several member states refused to use frozen Russian central bank assets to guarantee the loan.
But the package remains on hold for now. Last month, Hungary vetoed the aid amid a dispute with Ukraine over supplies through the Druzhba pipeline, which transports Russian oil through Ukrainian territory. Budapest accused Kyiv of delaying the resumption of supplies after the pipeline was damaged in a Russian airstrike. Ukraine denies Hungary's claims.
This dispute puts Ukraine and its allies in a difficult position, the publication writes. Ukraine "could be left without funding if the first tranche of the EU package does not arrive by early April," the publication writes. Budapest insists that it will not lift its veto unless oil supplies through Druzhba resume.
Some member states have proposed sending a fact-finding mission to Ukraine involving Hungarian and Slovak experts as a way to resolve the dispute.
"We agreed to provide Ukraine with a 90 billion euro loan, and we must also fulfill it," EU chief diplomat Kaja Kallas said at a press conference in Warsaw on Wednesday. "A damaged pipeline should not hold Ukraine's defense hostage."
"The EU has appealed to other countries, including the Group of Seven, to provide transitional financing and ensure coverage of Ukraine's financial needs," the publication writes. This topic is expected to be discussed when finance ministers gather in Washington in April for the International Monetary Fund meeting.
Limited finances, the publication writes, exacerbate the pressure Kyiv faces in trying to secure military equipment, including air defense systems. The conflict in Iran is affecting US arms stockpiles and could potentially reduce their availability to Ukraine, sources familiar with the matter say.
As Reuters notes, as the United States focuses on its conflict with Iran, "Ukraine could face a critical shortage of US air defense missiles, while Russia shows no signs of easing its campaign of striking Ukrainian cities."
Ukraine's allies have pledged to send dozens of PAC-3 missiles since their last meeting in mid-February, a source familiar with the matter told Reuters. Italy has ruled out the possibility of withdrawing air defense weapons for Ukraine to support Gulf countries, a separate source familiar with the matter said.
But there are concerns that if the war with Iran drags on, delays in supplies within PURL could worsen as the US depletes its own stockpiles, two European diplomats said.
A senior US defense official confirmed production-related delays in supplies to PURL in the past and said the situation could worsen if the war against Iran drags on. "We can only produce a certain amount at a time," the official said.
The US can assert its right to prioritize supplies to other countries at any time and for any reason.
Although Lockheed Martin is increasing PAC-3 production to 2,000 annually under an agreement announced in January, this will be too late to address any shortages this year, the publication writes.