European Union plan for shipping 1 million artillery shells in Ukraine is blocked as member states argue over how much contracts and money to produce the munitions will go to producers inside the European Union, rather than from third European countries such as Turkey, diplomats and officials quoted by Reuters said on Thursday. .

EU foreign ministers approved the innovative package on March 20. The most urgent part of the plan envisages the allocation of 1 billion euros for compensation to EU countries, which send from their own reserves to Ukraine the artillery shells that Kiev urgently needs. Legislation on that element has been finalized and will take effect in the coming days, said diplomats and officials, who spoke on condition of anonymity.

But a second element of the plan – a joint purchase of another 1 billion euros worth of ammunition, a historic move by the EU – is being held up by disagreements over which companies from certain countries are eligible for the contracts, sources told Reuters.

Announcing the package, EU foreign policy chief Josep Borrell said the ammunition would come from “European and Norwegian industry”. The draft directive, agreed by EU ambassadors and seen by Reuters, uses the same wording.

Some EU countries want funding to go to EU companies

But diplomats say France, which favors European defense integration and has a sizeable arms industry of its own, has pushed for a narrower definition of “European industry” to ensure that as much funding as possible goes to EU companies.

Greece and Cyprus were also interested in a stricter definition, expressing concern that some of the money earmarked for the purchase of 155mm artillery shells and rockets could end up with subcontractors or suppliers in Turkey, diplomats said.

But other EU countries rejected attempts to change the wording and make it more specific. Officials in Germany, Poland and the Netherlands say that too many restrictions on supply chains will delay sending ammunition to Ukraine, especially since many already doubt that the European industry can meet the target of 1 million rounds in 12 months.

“France requested wording to further strengthen the text with the idea of ​​’buy European,'” said a source close to the committee of EU ambassadors that negotiates the European bloc’s key political deals.

After the request was rejected, the matter “must go back to Paris and the answer will not come until after Easter”, the source said.

However, diplomats and officials expressed confidence that EU countries will reach an agreement after the Easter holidays.

If the delay is only a few weeks, it should not affect the EU’s overall effort to send munitions to the battlefield, as the request for a fast-track procedure has already been approved, diplomats said.

A French official assured that Paris will not block efforts to advance the plan for a long time. “At first, we will buy European weapons. European funding should go to the purchase of European weapons,” the official said. “But we also have to be realistic,” he admitted.

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