EU ambassadors have almost agreed to provide Ukraine with a €90 billion loan to support its defense against Russia. Politico reported this, citing its own sources in the diplomatic circle.
The negotiations lasted at least a week and were difficult. A key issue was how non-EU countries could participate in arms contracts funded by the loan. The draft deal would let Ukraine buy important weapons from the US, the UK, and other countries if there are no EU alternatives or if urgent needs arise. The UK must contribute financially to cover part of the loan’s interest if it takes part in extra purchases. The contribution depends on the benefits for its defense companies.
EU Oversight and Third-Country Participation
France led the effort to make sure that EU countries paying the interest benefit most from the defense contracts. To secure agreement, the draft specifies that any participation of third countries must respect a balance of rights and obligations. Third countries will not have the same rights or benefits as EU member states.
The draft also strengthens EU oversight of purchases outside the bloc. Ukraine must provide information proving the need for such purchases. The European Commission will review the data “without undue delay” together with the new Ukraine Defense Industrial Capacities Expert Group. The group will include representatives from EU countries.
Weapons Ukraine can buy outside the EU include air and missile defense systems, fighter aircraft ammunition, and long-range strike capabilities.
The European Commission plans to raise €90 billion in debt before Ukraine runs out of reserves in April. If budget funds are insufficient, member states will cover the difference.
Earlier, The Ukrainian Review reported that Sweden and Denmark ordered Tridon Mk2 air defense systems for Ukraine for more than €240 million.
