World
Kallas pitches plan to raise €40 billion in military aid for Ukraine
The new initiative by Kaja Kallas is facing unresolved questions and political resistance that threaten to slow down its approval and roll-out.
High Representative Kaja Kallas has pitched an ambitious plan to mobilise up to €40 billion in fresh military support for Ukraine, which, if achieved, would represent a twofold increase from the defence assistance the European Union provided last year.
The plan, already nicknamed “the Kallas initiative” in Brussels, seeks to fulfill Ukraine’s priority needs to fight Russia’s war of aggression, with special emphasis on artillery ammunition, air defence systems, missiles, drones and fighter jets.
Non-lethal provisions, such as training and equipment for Ukrainian brigades, will also be taken into account to ensure the participation of neutral member states.
The donations can be made through direct deliveries of hardware or financial contributions, ideally designed to foster purchases from Ukraine’s defence industry, which has expanded at a rapid pace in the last three years.
Kallas says the initiative should be worth “at least €20 billion” and “potentially” reach €40 billion, according to the latest version of the document dated 13 March and seen by Euronews. A previous draft did not feature a clear-cut economic figure.
The wording of the plan is noteworthy.
It speaks of “participating” countries, which implies a shift towards a coalition of the willing that might – or might not – correspond with the 27 member states.
Hungary has become a vocal critic of military assistance for Ukraine, going as far as blocking the joint conclusions of a special summit last week. Prime Minister Viktor Orbán has described this assistance as a “pro-war” agenda that goes against Donald Trump’s goal to achieve a settlement between the warring parties. (Orbán has refused to say whether Vladimir Putin has a pro-war or a pro-peace agenda.)
For almost two years, Hungary has maintained a veto on €6.6 billion in funds under the European Peace Facility (EPF), which is meant to partially reimburse member states for the weapons and ammunition they send to Ukraine. Diplomats have tried several avenues to circumvent Budapest and release the EPF, but nothing has worked yet.
Kallas seems keen to avoid the same mistake and is framing her new initiative as a voluntary scheme that could evade Hungary’s negative vote. Slovakia, another staunch critic of military assistance for Kyiv, might also stand in the way.
The latest draft says “participating states are encouraged” to come up with fresh contributions, a language that falls short of mandatory. The pledges should be communicated to Brussels by 30 April.
Additionally, Kallas is opening the coalition to countries outside the bloc, such as the United Kingdom and Norway, who have become closely involved in the ongoing discussions around security guarantees for Ukraine. Earlier this month, Norway boosted its 2025 pledge to NOK 50 billion, equivalent to a whopping €8.19 billion.
“The Kallas initiative is open to third states,” a high-ranking EU official confirmed on Friday. “The more countries participate, the better it is to also fulfill Ukraine’s needs to be in a strong position in the trajectory ahead.”
Unresolved questions
The Kallas plan has been the subject of debate for several weeks in Brussels.
It is set to be re-discussed on Monday during a meeting of foreign affairs ministers and again on Thursday during a summit of EU leaders. The need to ramp up support for Ukraine has become pressing in response to the Trump administration’s pivot towards Moscow and increasingly critical rhetoric against European allies.
ADVERTISEMENTThe High Representative wants to receive the political go-ahead from member states before turning her three-page document into a more detailed project.
“First a political will, and then the rest will follow,” said the high-ranking official.
However, no agreement is expected to materalise in either of those two meetings due to a series of unresolved technical and political questions.
Kallas has proposed that a “portion” of the military contribution be done “in line” with each country’s “economic weight,” using gross national income (GNI) as the chief indicator to ensure the largest countries provide the largest donations.
ADVERTISEMENTFrance, for example, is believed to resist this formula because it would make the country commit to a hefty figure for the entire year, second only to Germany. According to the Kiel Institute for the World Economy, France ranks below Denmark, Sweden and the Netherlands, much smaller countries, when it comes to military support.
Paris is said to prefer basing its provisions on its financial cycles and Ukraine’s shifting needs on the ground. But for other governments, GNI is the most appropriate indicator as it would ensure a fair and proportionate distribution of the burden.
“We’re very much in favour of the plan, including GNI,” said a senior diplomat, speaking on the condition of anonymity. “Let’s see if it’s accepted by other member states.”
“The plan is trying to chart a new way forward, but a lot of discussion needs to take place” before a final deal, the diplomat added.
ADVERTISEMENTAnother issue that the capitals want to clarify is the accounting: how pledges made in recent months will be considered in the collective figure. (The latest draft speaks of support “provided in kind since 24 February 2025,” the war’s third anniversary.)
The accounting process might incorporate the value of security guarantees provided to Ukraine. This could benefit France as President Emmanuel Macron has said he would be willing to put boots on the ground to safeguard a potential deal with Russia.
Countries are also pushing for answers on how the Kallas initiative will integrate the €18 billion that the EU will supply Kyiv as part of an extraordinary loan backed by the windfall profits of Russia’s frozen assets. The European Commission, which designed the loan, has promised “maximum flexibility” to let Ukraine use the much-needed injection of liquidity to procure advanced weapons and ammunition.
There is an additional question on how effective the plan will be in practice if, from the beginning, it is built as a voluntary scheme without a strong legal foundation.
ADVERTISEMENT“It’s done on a voluntary basis to bypass Hungary,” said a senior diplomat from another country. “We do expect the rest to join forces and put our money where our mouth is.”
“It’s a politically binding agreement, so we expect everybody to fulfill that.”
Alice Tidey contributed reporting.
NEW YORK (AP) — Oil prices rose in early trading Sunday as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz, the Persian Gulf waterway that is crucial to global energy supplies.
The price of U.S. crude oil increased 6.4% to $87.90 per barrel an hour after trading resumed on the Chicago Mercantile Exchange. The price of Brent crude, the international standard, climbed 5.8% to $95.64 per barrel.
The market reaction followed more than two days of lifted hopes and dashed expectations involving the strait. Crude prices plunged more than 9% Friday after Iran said it would fully reopen the strait, which it effectively controls, to commercial traffic.
Tehran reversed that decision and fired on several vessels Saturday after President Donald Trump said a U.S. Navy blockade of Iranian ports would remain in effect. On Sunday, Trump said the U.S. attacked and forcibly seized an Iranian-flagged cargo ship that allegedly tried to get around the blockade. Iran’s joint military command vowed to respond.
Sunday’s higher prices wiped out much of the declines seen Friday, signaling renewed doubts about how soon ships will again transport the vast amounts oil the world gets from the Middle East.
The US-Israeli war against Iran, now in its eighth week, has created one of the worst global energy crises in decades. Countries in Asia and Europe that import much of their oil from the Gulf have felt the most impact of halted supplies and production cuts, although rapidly rising gasoline, diesel and jet fuel prices are affecting businesses and consumers worldwide.
Asked when he thought U.S. motorists would again see gas cost less than $3 a gallon on average, Energy Secretary Chris Wright said prices at the pump might not go down that much until next year.
“But prices have likely peaked, and they’ll start going down,” Wright told CNN’s “State of the Union” on Sunday.
The price of crude oil — the main ingredient in gasoline — has fluctated dramatically since the U.S. and Israel attacked Iran on Feb. 28, and as Iran retaliated with airstrikes on other Gulf states. Crude traded at roughly $70 a barrel before the conflict, spiked to more than $119 at times, and previously closed Friday at $82.59 for U.S. oil and $90.38 for Brent.
Industry analysts have repeatedly warned that the longer the strait is closed, the worse prices could get.
A fragile, two-week ceasefire between the U.S. and Iran is set to expire Wednesday, while escalating tensions in the Strait of Hormuz puts the fate of new talks to end the war into question.
Even if a lasting deal to reopen the Strait of Hormuz emerges, analysts say it could take months for oil shipments to return to normal levels and for fuel prices to go down. Backed-up tanker traffic, shipowners concerned about another sudden escalation, and energy infrastructure damaged during the war are factors that could impede production and shipment volumes from returning to pre-war levels.
A gallon of regular gas cost an average of nearly $4.05 a gallon in the U.S. on Sunday, according to motor club federation AAA. That’s about 8 cents lower than a week ago, but far higher than $2.98 before the war.
Trump warns Iran it ‘can’t blackmail’ US with Hormuz closure
Fox News reports on heightened tensions in the Middle East as Iran’s Revolutionary Guard reaffirms strict control over the Strait of Hormuz and fires on passing ships. President Donald Trump, speaking from the Oval Office, states the US naval blockade will remain in full force. White House correspondent Alex Hogan provides updates on the escalating diplomatic and military standoff.
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Hundreds of commercial tankers are stranded on both sides of the Strait of Hormuz after Iran shut the critical chokepoint on April 18, halting traffic and leaving crews trapped amid reports of gunfire and “traumatic experiences” on board.
The Strait of Hormuz is considered an international waterway under international law, through which ships have the right of transit passage, according to the United Nations Convention on the Law of the Sea (UNCLOS).
Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, making it a critical chokepoint for global energy markets, according to the U.S. Energy Information Administration.
The U.K. Maritime Trade Operations (UKMTO) said Iranian gunboats opened fire on a tanker the same day, while a projectile struck a container vessel, damaging cargo.
STARMER AND MACRON ACCUSED OF ‘PLAYING AT BEING RELEVANT’ WITH STRAIT OF HORMUZ PLAN
U.S. Central Command said Tuesday that “U.S. Navy guided-missile destroyers are among the assets executing a blockade mission impacting Iranian ports.” (CENTCOM)
Audio released by maritime monitoring group TankerTrackers appears to capture the moment a vessel and its crew came under fire while approaching the strait, including a distress call from a crew member.
“Sepah Navy! Motor tanker Sanmar Herald! You gave me clearance to go… you are firing now. Let me turn back!” the crew member can be heard saying in the recording, according to TankerTrackers.
Iranian state media confirmed that shots were fired near vessels to force them to turn back, while the Ministry of External Affairs of the Government of India said the foreign secretary was deeply concerned.
Hapag-Lloyd, the world’s fifth-largest container shipping line, told Fox News Digital that it had activated a crisis team as its crews remain stuck on board vessels in the region.
“We have been working from Friday afternoon until today with the entire crisis team to bring the vessels out — in vain, unfortunately,” said Nils Haupt, senior director of group communications at Hapag-Lloyd AG.
“These events can easily lead to traumatic experiences. There is also a significant risk from sea mines, which has made insuring vessels for passage through the Strait nearly impossible.”
LISA DAFTARI: HORMUZ WHIPLASH PROVES TEHRAN CAN’T HONOR ANY DEAL IT SIGNS
“The crews are well, but they are becoming increasingly impatient and frustrated. It is very unfortunate that we could not leave today,” he added. “Many ships are still stuck in the Persian Gulf.”
“Our six ships are anchored near the port of Dubai, and all crews hope for an improvement in the situation,” Haupt said.
The Islamic Revolutionary Guard Corps (IRGC) said on April 18 that the strait would remain closed until the U.S. lifts its blockade on Iranian ports, warning ships not to move from anchorage or risk being treated as “enemy” collaborators.
Iran has previously argued that restrictions on its oil exports and shipping amount to “economic warfare,” framing actions in the Strait of Hormuz as a response to foreign pressure on its economy, according to statements from Iranian officials and state media in past incidents.
“Approaching the Strait of Hormuz will be considered cooperation with the enemy, and any violating vessel will be targeted,” the IRGC said in a statement carried by the semi-official Tasnim News Agency.
TRUMP ORDERS A BLOCKADE IN THE STRAIT OF HORMUZ AS TENSIONS WITH IRAN SOAR
Fishing boats dot the sea as cargo ships, in the background, sail through the Arabian Gulf toward the Strait of Hormuz off the United Arab Emirates, Friday, March 27, 2026. (AP Photo)
The United States imposed the blockade on Iranian ports to pressure Tehran to reopen the strait, with U.S. Central Command saying the measures are being enforced “impartially against all vessels.”
Hapag-Lloyd said its vessels have been stuck for weeks following the initial closure after the outbreak of war with Iran on Feb. 28.
“For us, it is critical that our vessels can pass through the strait soon,” Haupt said.
“We offer all crew members unlimited data so they can video call loved ones and access entertainment. Crews are strong, but after weeks on board there is growing monotony and frustration.”
“One crew experienced a fire on board from bomb fragments. Others have seen missiles or drones near their vessels,” he added.
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“They are resilient, but each additional day makes the situation more difficult, more monotonous, and more stressful.”
President Donald Trump said Iran had agreed not to close the strait again but after the closure, Trump called the situation “blackmail” and said the U.S. would not back down.
Shops and schools shut in northern Israel as residents protested a 10-day ceasefire with Lebanon that took effect on April 16, saying “nothing was achieved”. Israeli officials say operations may continue, with forces still deployed inside southern Lebanon.
Published On 19 Apr 2026
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