EU Readies €50BN Package & Pentagon Ramps Up Shell Production, Even As Ukraine Offensive Falters
Despite the current widespread reports that the Ukrainian counteroffensive isn't going well, which was confirmed this week in awkward statements by both President Zelensky and his defense minister Oleksii Reznikov, the West is taking steps to double or triple down on its already massive support to Ukraine.
First, the European Union is set to propose a financial aid package of around €50 billion ($55 billion) for Kiev, which has been described as not only bolstering the attempt to retake lost territory, but help with Ukraine's expenditures for reconstructing the country.
EU Commissioner Valdis Dombrovskis told Bloomberg TV this week that member states are likely to back the proposal.
According to more from Bloomberg, "The commission wants to avoid a burdensome reconstruction instrument for a country at war and will offer the aid in the form of grants, concessional loans and guarantees, said the people, who spoke on condition of anonymity because the discussions are private."
The EU still says it is mulling options to divert Russia's frozen central bank assets (and others) to Ukraine for reconstruction and state budget needs.
But it remains, as the report notes, "The cash will be disbursed provided Ukraine fulfills reforms to improve the rule of law and address corruption. The reforms aim to put Ukraine on a path to become an EU member with leaders to decide whether to open negotiations by the end of the year."
Parallel to these EU initiatives, Washington's support shows no signs of waning, despite Republican members of Congress recently suggesting that future aid could be tied to how well Ukraine does on the battlefield.
The Wall Street Journal reports Thursday, "The U.S. has sharply increased production of a key artillery shell, helping to alleviate a global shortage of the ammunition that threatened to squeeze Ukrainian forces as they battle Russia, the U.S. Army’s acquisition chief said."
"Doug Bush, the Army’s assistant secretary for acquisitions, logistics and technology, said in an interview that the U.S. is currently producing around 24,000 155-millimeter howitzer shells each month, up from around 14,000 a month before Russia’s invasion of Ukraine."
He identified a goal set by US officials of producing between 70,000 and 80,000 shells a month by early 2025. "We are on a very rapid path to get to really high numbers," Bush told the newspaper. But defense industry executes have still described a significant struggle to keep pace with demand.
Just weeks ago, Rep. Michael McCaul (R-TX), chairman of the House Foreign Affairs Committee, warned that future support for Kiev would depend on its ability to liberate territory. "I think there’s going to be a lot riding on the line with this counteroffensive," he said.
"If Ukraine is successful in the eyes of the American people and the world, I think it will be a game-changer for continued support. If they are not, that will also have an impact, in a negative way, though."
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