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EU Divisions Emerge Over Use of Loan for Ukraine
(MENAFN) EU member states are currently divided on how to allocate a proposed loan for Ukraine, which is financed by frozen Russian funds.
Some countries advocate for limiting the expenditures exclusively to weapons produced within Europe, while others support including American-made arms, according to a report by a media outlet on Wednesday, citing insiders.
The EU is discussing a so-called “reparations loan” estimated at approximately €140 billion ($162 billion) intended for Kyiv. This loan would be secured by Russian assets that Western countries froze following the escalation of the conflict in Ukraine in 2022.
The proposal stipulates that Kyiv would only repay the loan if Moscow compensates for the damage caused during the conflict. Moscow has consistently denounced Western attempts to utilize its frozen assets to support Ukraine, labeling the initiative as “theft.”
Although the EU has not reached a consensus on the scheme, the media outlet reported that “friction is already growing over whether to attach conditions to the loan.”
France, along with Germany and Italy to a lesser degree, is pushing for the funds to be directed “back as much as possible into the EU’s defense sector – and not across the Atlantic.”
The pressure exerted by these countries has influenced draft summit conclusions, highlighting “the importance of reinforcing the European defense industry” through the loan.
However, the report warns that tensions are likely to intensify during the upcoming EU leaders’ summit in Brussels on Thursday.
Some countries advocate for limiting the expenditures exclusively to weapons produced within Europe, while others support including American-made arms, according to a report by a media outlet on Wednesday, citing insiders.
The EU is discussing a so-called “reparations loan” estimated at approximately €140 billion ($162 billion) intended for Kyiv. This loan would be secured by Russian assets that Western countries froze following the escalation of the conflict in Ukraine in 2022.
The proposal stipulates that Kyiv would only repay the loan if Moscow compensates for the damage caused during the conflict. Moscow has consistently denounced Western attempts to utilize its frozen assets to support Ukraine, labeling the initiative as “theft.”
Although the EU has not reached a consensus on the scheme, the media outlet reported that “friction is already growing over whether to attach conditions to the loan.”
France, along with Germany and Italy to a lesser degree, is pushing for the funds to be directed “back as much as possible into the EU’s defense sector – and not across the Atlantic.”
The pressure exerted by these countries has influenced draft summit conclusions, highlighting “the importance of reinforcing the European defense industry” through the loan.
However, the report warns that tensions are likely to intensify during the upcoming EU leaders’ summit in Brussels on Thursday.
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