Update: plan by Estonia to provide 100 billion euro every year, eurobonds and other ways – for attrition of russian forces
Described plan by Kaja Kallas and Estonia for raising 100 billion. Majority must be raised by eurobonds or other ways but speed is a key: https://www.euractiv.com/section/defence-and-security/news/estonia-puts-forward-e100-billion-funding-plan-for-ukraine/
Update regarding better use of frozen russian assets: “You could use the proceeds from the Russian assets “to go to the capital markets, and use that as a yearly interest payments,” Belgian Prime Minister Alexander De Croo said on Thursday. “It’s a way of using the profits on the Russian frozen assets to leverage much bigger volume, which I think is what is necessary.” https://finance.yahoo.com/news/eu-starts-long-costly-path-170807532.html
It is necessary to start international negotiations on payment, or some quick joint loan, for the military aid package in the amount of 60 billion from the USA, which is blocked in the House of Representatives. We cannot wait indefinitely, and European countries can and must be able to find such money (in cooperation with other democratic states of the world) – when it comes to saving European and world security.
UPDATE:
Letter to European leaders:
We need to start funding 60 billion US defense package for Ukraine.
Dear European leaders,
situation in Ukraine is critical especially due to blocked package in US Congress. Based on recent experience, the stalemate will take more weeks or even months. At the same time, situation with Russian ground and aerial attacks is deteriorating.
Therefore, apart from other initiatives, we need to start funding first most urgent parts from 60 billion US defense package for Ukraine. Advantages of such a plan are following:
- Speed to deliver help for Ukrainian defenders: we know, that both political parties in US can see as beneficial the European request for direct ordering from USA. Likely the most critical examples needed are Patriot missiles, ammunition, Bradley vehicles etc. Both political US parties can sell such approach as their victory. Therefore, the approval process shall be much faster vs. currently blocked bill for granting these from US budget. And speed is essential for Ukraine. Russia is advancing and what is most important, causing heavy casualties among invaluable defenders of Ukraine. Moreover, US has advanced military logistics and help can start flow fast – compared to deals with other countries, this help can reach battlefield sooner.
- Affordability: Funding means loans, direct funding, all viable financial instruments. The package seems large but to put that into perspective, European coronavirus recovery plan is 800 billion euro. And we will not have to pay complete 60 billion package. We primarily need to solve the urgent issues on the battlefield and show to our partners in USA that we can mobilize for European defense. Once the critically needed defense packages start flowing again also from US, the administration of President Biden will have time to negotiate the rest. Second source of relief is income by frozen Russian assets. Now, we need the speed, Russian assets shall help spare the European budgets in the future.
- Best preparation for the worst: We need to stop dreaming regarding fast approval of US bill for Ukraine. We must use the opportunity of US administration which is willing to support allies with favorable conditions. We can expect further changes and instabilities in US politics during election year and beyond. To enter that phase with exhausted Ukrainian ground forces would be an extremely expensive mistake, apart from moral failures towards brave people of Ukraine.
- Fair share: This proposal is not “simply paying US share” by European and other taxpayers. Even if we directly pay big part of US defense package for Ukraine, USA will still fund the largest share of our common defense.
Conclusion: we urge European leaders to start direct, and fastest procurement of US stocks prepared for approval of 60 billion bill for Ukraine. That approval may never come, and we must start the plan B immediately.
Sincerely,
We should not be overly optimistic regarding situation in USA. We should use the window of opportunity when there is administration favourable to support Ukraine. The price, loans, common projects can be now more affordable than in the future – but main reason is that Ukraine needs our support in order to protect also us. And needs it Now.
We were inspired by czech ammunition initiative and know that much more is needed.
Also Politico article is saying that we do too little and shall agree on fast loans among G7 countries (backed by frozen russian money if possible) to defend Ukraine: https://www.politico.eu/article/eu-ukraine-aid-war-50-billion/
Greetings from Prague and Sláva Ukrajině!
Same article we published on: https://obcanskyrozcestnik.cz/call-for-europe-to-borrow-pay-60-billion-us-defense-support-package-for-ukraine/