18 Feb— The European Union should develop a plan to issue Eurobonds worth 100 billion euros to stimulate the development of the defense industry and “do more” to supply weapons to Ukraine, Estonian Prime Minister Kai Kallas told the agency Bloomberg.
The prime minister said in an interview with the agency on the sidelines of the Munich Security Conference that the next European Commission, to be elected in June, should take the same “unified approach to security” as the current composition of the European Commission did when it fought the COVID-19 pandemic.
“We are in a situation where we need to invest more and explore what we can do together, because the bonds that will be issued by countries individually are too small to scale. European bonds could have a much bigger impact,” Kallas said.
The prime minister stressed that she remains optimistic that the United States will accept an aid package for Ukraine. Callas said the EU should take “more urgent steps” to help Ukraine while focusing on developing EU industry and securing long-term supply contracts, including by sourcing weapons around the world to buy and ship to Kiev.
Earlier, the British newspaper Financial Times, citing sources, reported that Western countries were developing plans to issue debt to help finance Ukraine, using Russian assets as support to repay the debt.
On February 1, EU leaders at a summit in Brussels agreed to allocate 50 billion euros of macro-financial assistance to Ukraine.
Russia previously sent a note to NATO countries over arms supplies to Ukraine. Russian Foreign Minister Sergei Lavrov noted that any cargo that contains weapons for Ukraine will become a legitimate target for Russia. The Russian Foreign Ministry stated that NATO countries are “playing with fire” by supplying weapons to Ukraine. The Kremlin emphasized that pumping Ukraine up with weapons from the West does not contribute to the success of Russian-Ukrainian negotiations and will have a negative effect. Lavrov also stated that the United States and NATO are directly involved in the conflict in Ukraine, “including not only by supplying weapons, but also by training personnel… in the territory of Great Britain, Germany, Italy, and other countries.”