Proposal for a COUNCIL DECISION concerning the allocation of funds decommitted from projects under the 10th and 11th European Development Funds for the purpose of financing actions addressing the food security crisis and economic shock in African, Caribbean and Pacific (ACP) countries following Russia's war of aggression against Ukraine
Date: 2022-06-20
Institutions: Directorate-General for International Partnerships, European Commission
Subjects: ACP countries, EU financing, European Development Fund, Russia, Ukraine, economic recession, financial aid, food security, humanitarian aid, territorial dispute

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   EUROPEAN COMMISSION  Brussels, 20.6.2022  COM(2022) 306 final 2022/0198 (NLE)  Proposal for a COUNCIL DECISION concerning the allocation of funds decommitted from projects under the 10th and 11th European Development Funds for the purpose of financing actions addressing the food security crisis and economic shock in African, Caribbean and Pacific (ACP) countries following Russia's war of aggression against Ukraine  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  food  security  situation  in  the  world  is  rapidly  deteriorating  and  many  of  the  countries 
affected are least developed countries or low-income, food-deficit countries.  

Before  the  exacerbation  of  global  food  insecurity  by  Russia’s  war  of  aggression  against 
Ukraine, close to 193 million people (almost 40 million more than the previous year) across 
53 countries/territories were acutely food insecure and in need of urgent assistance. Russia’s 
war  of  aggression  against  Ukraine  has  resulted  in  drastic  reduction  in  supply  of  grains  to 
global markets as Black Sea routes are blocked, and grain silos deliberately attacked. Global 
food prices are rising rapidly and are at their highest level in three decades. The increase in 
energy  prices  drives  up  prices  of  agricultural  inputs  (notably  fertilizers),  transport  and 
ultimately  food.  These  price  hikes  are  worsening  the  macro-economic  outlook  in  a  context 
where  fiscal  space  was  already  reduced  by  the  COVID-19  pandemic.  This  could  lead  to  a 
further increase in the number of countries in debt distress and/or with balance-of-payments 
crises. Conflicts and droughts further exacerbate the situation in vulnerable regions. The most 
vulnerable countries are the least developed and low-income ones. As seen with uprisings in 
the past decades, it is often a food price shock that sets off instability and conflict. 

The political sense of urgency in support of the most exposed countries has been underlined 
by the European Council in its Conclusions of 24-25 March1 where it invited the Commission 
to prioritise work on global food security and affordability, in particular by supporting food 
security  and  agriculture  in  Ukraine  and  the  most  vulnerable  and  exposed  third  countries. 
Subsequently,  in  its  Conclusions  of  30-31  May  20222,  the  European  Council  invited  the 
Commission to explore the possibility of mobilising reserves from the European Development 
Fund  to  support  the  most  affected  partner  countries.  Funds  under  the  Neighbourhood, 
Development  and  International  Cooperation  Instrument  -  Global  Europe  (NDICI-Global 
Europe)3  geographic  pillar  are  fully  programmed  and  around  EUR  3  billion  is  already 
focusing  on  agriculture,  nutrition,  water  and  sanitation  programmes.  Additionally, 
approximately  EUR  520  million  were  initially  allocated  in  2022  to  African,  Caribbean  and 
Pacific  (ACP)  countries  under  the  humanitarian  aid  budget,  of  which  a  significant  part  is 
addressing food insecurity and related needs. Nevertheless, given the extent of the needs and 
potential consequences,  additional finance to support partner countries  should  be mobilised. 
Availabilities  under  the  EU  budget  are  very  limited  (the  NDICI-Global  Europe  emerging 
challenges  and  priorities  cushion  will  be  entirely  used  in  2022  to  respond  to  other  urgent 
priorities  and  the  initial  2022  Humanitarian  Aid  budget  towards  food  security  and  related 
needs in ACP countries identified before the start of Russia’s war of aggression in Ukraine is 
close  to  full  implementation),  and  given  the  impact  in  various  ACP  partner  countries,  the 
mobilisation  of  decommitted  funds  from  the  10th  and  11th  European  Development  Funds 
(EDF) could allow the EU and its Member States to step up their support and contribute to the 
efforts to address the food security crisis  exacerbated by Russia’s  war of aggression against 
Ukraine, in a Team Europe approach. 

The  objective  of  this  proposal  for  a  Council  decision  is  to  obtain  the  authorisation  of  the 
Council to use decommitted funds from the 10th and 11th EDFs to finance actions addressing 
the  food  crisis  and  economic  shock  in  ACP  countries  following  Russia’s  war  of  aggression 

1 
2 
3 

European Council Conclusions of 23-24 March 2022 (EUCO 1/22). 
European Council Conclusions of 30-31 May 2022 (EUCO 21/22). 
OJ L 209, 14.6.2021, p. 1–78. 

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against Ukraine with an amount of up to EUR 600 000 000, of which EUR 488 000 000 under 
from the 10th EDF and EUR 112 000 000 from the 11th EDF. 

Out of these funds, up to EUR 582 000 000 will contribute to the financing of actions and up 
to EUR 18 000 000 will cover the support expenditure incurred by the Commission.  

These  funds  will  be  used  to  the  benefit  of  the  most  affected  partner  countries,  paying 
particular attention to the most vulnerable and exposed countries, notably to provide: 

 

 

 

macro-economic support (EUR 100 million); 

support to food production and resilience of food systems (EUR 350 million);  

humanitarian assistance (EUR 150 million). 

As regards the support to food production and resilience of food systems, the EU will support 
investments  in  local  production  capacities  as  part  of  sustainable  aquatic  and  agri-food 
systems,  based  on  agroecological  approaches,  including  diversification  of  agricultural  value 
chains  and food production. The  following  criteria  could be used  to  focus the assistance on 
selected countries: 

 

 

 

 

The partners’ (increasing) levels of food insecurity and malnutrition; 

The partners’ exposure to the consequences of the Russian aggression against 
Ukraine, based notably on their share of food imports into their GDP; 

The  partners’  macroeconomic  vulnerabilities,  which  could  be  established  on 
the basis of their debt to GDP ratio, international reserves / months of imports 
coverage and Debt Sustainability Analysis rating;  

The potential impact of Union funding in partner countries or regions, assessed 
notably  through  the  scope  to  scale  up  relevant  production  and  resilience 
enhancing interventions. 

Actions  financed  under  this  proposal  will  support  the  EU  Global  Food  Security  Response, 
which was developed following a request by the European Council4. The Response includes 
immediate  and  medium-term  actions  to  demonstrate  partners  worldwide  that  the  EU  is 
providing integrated, comprehensive and swift support to address the impact the war is having 
on them. The EU Global Food Security Response operationalises the various strands of action 
– as foreseen within FARM and the G7 Global Alliance and providing the necessary support 
to the UN Global Crisis Response Group. 

• 

Consistency with existing policy provisions in the policy area 

The EU is committed to achieving the Sustainable Development Goal (SDG) related to “zero 
hunger”  (SDG2)  and  has  been  working  with  partners  to  collectively  step  up  support  to  end 
hunger,  achieve  food  security  and  improved  nutrition,  and  promote  sustainable  agriculture. 
This  is  reaffirmed  in  the  European  Consensus  on  Development5.  Agricultural  and  rural 
development  are  key  to  reducing  poverty,  boosting  food  and  nutrition  security,  stimulating 
economic  growth, and protecting the  environment,  all within the context  of climate  change. 
They  can  also  play  a  major  role  in  promoting  gender  equality  and  empowering  women  and 
girls.  The EU’s  approach to  reach SDG2 focuses on:  acting to  enhance the resilience of the 
most vulnerable to food crises, fighting malnutrition and helping secure nutritional health and 

4 
5 

European Council Conclusions of 23-24 March 2022 (EUCO 1/22). 
The new European Consensus on Development, ‘Our world, our dignity, our future’  – Joint statement 
by the Council and the Representatives of the Governments of the Member States, meeting within the 
Council, the European Parliament and the European Commission, 2017 (OJ C 210, 30.06.2017). 

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well-being  for  present  and  future  generations  and  stimulating  responsible  investments  and 
supporting innovation in agriculture and food systems. 

Making  progress  on  SDG2  implies  advancing  in  a  cross-sectoral  manner  on  several  other 
SDGs.  The  adoption  of  nexus  approaches  linking  land  (SDG  15),  water  (SDG  6),  and 
sustainable  energy  (SDG7)  to  food,  synergizing  natural  resources  management,  agriculture 
and  climate  change 
‘development’  and 
(SDG13)  or  connecting 
‘conflict/peace’ strengthens such holistic approaches. 

‘humanitarian’, 

The  EU  response  to  the  current  food  security  crisis  will  be  driven  by  the  Green  Deal6  and 
Farm to Fork Strategies7, and build on the approach of the humanitarian-development-peace 
nexus. Support will be provided to countries that are facing high food security challenges, are 
negatively  affected  by  the  effects  Russia’s  war  of  aggression  against  Ukraine  and  are  in  a 
vulnerable macro-economic position with little or no buffers to whistand the situation. 

These funds will be used in  accordance with  the rules and procedures applicable to  the 11th 
EDF. They will notably reinforce ongoing or new actions addressing food security issues in 
ACP  countries.  Funds  decommitted  from  the  actions  financed  following  this  Decision  will 
remain a resource of the EDF of origin. 

• 

Consistency with other Union policies 

The actions financed under these funds will be used in full consistency and complementarity 
with other actions in the area of food security, notably humanitarian aid actions as well as on-
going 11th EDF actions and actions financed under NDICI-Global Europe. The component on 
food production and resilience of food systems will notably be implemented by building upon 
existing actions. 

2. 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

• 
Article 1(4) and (5) of the 11th EDF Internal Agreement8. 

The  EDF  is  set  up  by  11th  EDF  Internal  Agreement  and  foresees  the  possibility  to  use 
decommitted funds, if so unanimously decided by the Council9.  

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Communication from the European Commission to the European Parliament, the European Council, the 
Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions  “The 
European Green Deal” of 11 December 2019, COM(2019) 640 final. 
Communication from the European Commission to the European Parliament, the European Council, the 
Council, the European Economic and Social Committee and the Committee of the Regions “A Farm to 
Fork  Strategy  for  a  fair,  healthy  and  environmentally-friendly  food  system”  of  20  May  2020, 
COM(2020) 381 final. 
Internal  Agreement  between  the  Representatives  of  the  Governments  of  the  Member  States  of  the 
European  Union,  meeting  within  the  Council,  on  the  financing  of  European  Union  aid  under  the 
multiannual  financial  framework  for  the  period  2014  to  2020,  in  accordance  with  the  ACP-EU 
Partnership  Agreement,  and  on  the  allocation  of  financial  assistance  for  the  Overseas  Countries  and 
Territories to which Part Four of the Treaty on the Functioning of the European Union applies (OJ L 
210, 6.8.2013, p.1). 
Article  1(4)  and  (5)  of  the  11th  EDF  Internal  Agreement  and  Article  55  of  Council  Regulation  (EU) 
2018/1877  of  26  November  2018  on  the  financial  regulation  applicable  to  the  11th  European 
Development Fund. 

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• 

Choice of the instrument 

The EDF was the main source of funding for the ACP countries until the end of 2020 and a 
number of ongoing actions addressing food security has been financed with the EDF funds. 

Under the 2021-2027  Multiannual  Financial  Framework, cooperation with ACP countries is 
financed from the EU budget via the NDICI-Global Europe.  

Given the number of urgent geopolitical needs in a context of limited margin of manoeuvre to 
mobilise additional funding inside the EU budget, the use of decommitted funds from 10th and 
11th  EDF  while  using  EDF  rules  and  procedures  is  deemed  to  be  the  most  effective  way  to 
step up the Union’s action in response to the food crisis.  
In  accordance  with  Article  1(4)  and  (5)  of  the  11th  EDF  Internal  Agreement,  the  Council 
decides on a proposal of the Commission.  

3. 

BUDGETARY IMPLICATIONS 

There are no budgetary implications for the EU budget. The EDF is not part of the EU budget. 

4. 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

• 
Monitoring, evaluation and reporting arrangements are those applicable  to the 11th EDF and 
those foreseen in the relevant implementing acts. 

• 

Detailed explanation of the specific provisions of the proposal 

Article  1(1)  of  the  proposal  provides  that  de-committed  funds  up  to  a  maximum  amount  of 
EUR 600 000 000 from projects under the 10th and 11th EDFs will be allocated for the purpose 
of financing actions addressing the food security crisis.  

Article 1 (2) provides that a maximum of EUR 18 000 000 of the amount under paragraph (1) 
will  be  allocated  to  the  Commission  for  support  expenditure  to  cover  the  costs  foreseen  in 
Article 6 of the 11th EDF Internal Agreement. This is calculated by using a ratio (3%) below 
the one foreseen for the management of the 11th EDF funds in Article 1(2) (a) of the 11th EDF 
Internal Agreement (3.45%).  

Article  1  (3)  provides  that  the  rules  of  the  11th  EDF  as  set  out  in  the  Implementation  and 
Financial Regulations10 will be applicable. 

Article 2 provides for the date of entry into force of the decision. 

10 

Council  Regulation  (EU)  2015/322  of  2  March  2015  on  the  implementation  of  the  11th  European 
Development  Fund  (OJ  L  58,  3.3.2015,  p.  1–16)  and  Council  Regulation  (EU)  2018/1877  of  26 
November 2018 on the financial regulation applicable to the 11th European Development  Fund (OJ L 
307, 3.12.2018, p. 1–21). 

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2022/0198 (NLE) 

Proposal for a 

COUNCIL DECISION 

concerning the allocation of funds decommitted from projects under the 10th and 11th 
European Development Funds for the purpose of financing actions addressing the food 
security crisis and economic shock in African, Caribbean and Pacific (ACP) countries 
following Russia's war of aggression against Ukraine 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to the Internal Agreement between the Representatives of the Governments of 
the Member States  of the European Union, meeting within the Council,  on the financing of 
European Union aid under the multiannual financial framework for the period 2014 to 2020, 
in  accordance  with  the  ACP-EU  Partnership  Agreement,  and  on  the  allocation  of  financial 
assistance for the Overseas Countries and Territories to which Part Four of the Treaty on the 
Functioning of the European Union applies(11) (Internal Agreement), and in particular Article 
1(4) and (5) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Following  Russia’s  war  of  aggression  against  Ukraine,  the  food  security  situation  in 
the  world  is  rapidly  deteriorating  and  many  of  the  countries  affected  are  least 
developed countries or low-income, food-deficit countries. 

EUR  3  billion  are  already  programmed  under  the  Neighbourhood,  Development  and 
International Cooperation Instrument - Global Europe12 geographic pillar. Out of this 
amount,  EUR  2.3  billion  has  been  programmed  in  ACP  countries  to  finance 
agriculture, nutrition, water and sanitation actions between 2021 and 2024. Given the 
extent of the needs and expected consequences, additional means should be mobilised 
to support the most affected partner countries.  

The  Union  is  close  to  full  implementation  of  the  initial  Humanitarian  Aid  budget 
towards food security and related needs in ACP countries identified before the start of 
Russia’s  war  of  aggression  in  Ukraine.  Given  the  exceptionally  dire  food  security 
situation  in  ACP  countries,  these  funds  need  to  be  complemented  with  appropriate 
resources to respond to the further exacerbation of humanitarian needs and to ensure 
continuity of cooperation from crisis to stable conditions for development. 

The European Council, in its 24-25 March 2022 Conclusions, invited the Commission 
to prioritise work on global food security and affordability, in particular by supporting 
food  security  and  agriculture  in  Ukraine  and  the  most  vulnerable  and  exposed  third 
countries. 

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OJ L 210, 6.8.2013, p.1. 
OJ L 209, 14.6.2021, p. 1–78. 

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(5) 

(6) 

(7) 

(8) 

(9) 

The European Council, in its 30-31 May 2022 Conclusions, invited the Commission to 
explore the possibility of mobilising reserves from the European Development Fund to 
support the most affected partner countries. 

Given  the  significant  impact  in  various  ACP  partner  countries,  the  mobilisation  of 
decommitted funds from the 10th and 11th European Development Funds should enable 
the EU and its Member States to step up their response to the crisis. 

These  funds  should  finance  actions  with  a  view  to  providing  support  to  food 
production  and  resilience  of  food  systems,  humanitarian  assistance,  and  macro-
economic support, including support expenditure referred to in Article 6 of the Internal 
Agreement. 

Pursuant to Article 153 of the Agreement on the Withdrawal of the United Kingdom 
of  Great  Britain  and  Northern  Ireland  from  the  European  Union  and  the  European 
Atomic Energy Community(13), the United Kingdom's share of these funds will not be 
reused. 

These funds should be used in accordance with the rules and procedures applicable to 
the 11th EDF, as set out in Council Regulation (EU) 2015/322 of 2 March 2015 on the 
implementation  of  the  11th  European  Development  Fund,  and  Council  Regulation 
(EU)  2018/1877  of  26  November  2018  on  the  financial  regulation  applicable  to  the 
11th European Development Fund, 

HAS ADOPTED THIS DECISION:  

Article 1 

An amount up to a maximum of EUR 600 000 000 from the funds decommitted from projects 
under  the  10th  and  11th  European  Development  Funds  shall  be  allocated  for  the  purpose  of 
financing  actions  addressing  the  food  security  crisis  and  economic  shock  in  ACP  countries 
following Russia’s war of aggression against Ukraine.  

From  this  amount,  up  to  a  maximum  of  EUR  18  000  000  shall  be  allocated  for  support 
expenditure incurred by the Commission. 

These  funds  shall  be  used  for  financial  commitments  in  accordance  with  the  rules  and 
procedures  applicable  to  the  11th  European  Development  Fund,  as  set  out  in  Council 
Regulation  (EU)  2015/322  of  2  March  2015  on  the  implementation  of  the  11th  European 
Development  Fund,  and  Council  Regulation  (EU)  2018/1877  of  26  November  2018  on  the 
financial regulation applicable to the 11th European Development Fund. 

This Decision shall enter into force on the day following its adoption. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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OJ L 29, 31.1.2020, p. 7. 

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