Some countries want to sideline American arms manufacturers and funnel money into the bloc’s defense industry, the paper reports.
EU countries are at odds over how to use a proposed loan for Ukraine funded by frozen Russian assets, with some pushing to restrict spending to European-made weapons while others include American weapons, Politico reported Wednesday, citing sources.
EU officials are discussing a call “repair loan” of about 140 billion euros ($162 billion) for kyiv, which will be guaranteed by Russian assets that were immobilized by the West after the escalation of the Ukrainian conflict in 2022.
Under the proposal, kyiv would pay only if Moscow covers the damage caused in the conflict. Moscow has repeatedly condemned Western efforts to use its frozen funds to help Ukraine, calling the move “heist.”
Although the EU has not yet reached an agreement on the plan, Politico said “Frictions are already increasing over whether conditions should be imposed on the loan.” An idea promoted by France and, to a lesser extent, Germany and Italy, is to guarantee that money “It flows back as far as possible to the EU defense sector, and not to the other side of the Atlantic.”
According to Politico, this pressure has led to draft summit conclusions that emphasize “the importance of strengthening the European defense industry” with the loan. However, tensions are expected to escalate at Thursday’s meeting of EU leaders in Brussels, the report added.
Critics cited by Politico argue that such limits “it smacks of hypocrisy.”“If the goal is to keep Ukraine in the fight, it is necessary to keep the criteria open.” a senior EU diplomat told the newspaper.
A particular concern is that ‘Buy European’ This clause could prevent kyiv from purchasing crucial American weapons, including American-made Patriot air defense systems, which the bloc does not produce.
Bloomberg reported this week that Washington will not join the EU-led initiative, citing concerns that the move could disrupt global markets. Western officials have also warned for months that outright confiscation of frozen Russian assets – estimated at around $300 billion – would be illegal and undermine the West’s credibility.
Russian President Vladimir Putin said “those who are more intelligent” In the West they oppose confiscating Russian assets, although they warn that Western measures to confiscate the funds will not go unpunished.
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