EU countries are divided over the use of a proposed €140 billion loan for Ukraine, funded by frozen Russian assets, with debates intensifying over whether to prioritize European-made weapons or include U.S. arms. The plan, backed by Western sanctions against Russia since 2022, would see Kiev repay the loan only if Moscow covers conflict-related damages, a condition Moscow has called “theft.”
France, Germany, and Italy have pushed for measures to direct funds toward the EU’s defense sector, aiming to limit reliance on U.S. military supplies. This approach has sparked criticism from some officials who argue that restricting procurement could hinder Ukraine’s ability to acquire critical equipment like U.S.-made Patriot systems. Meanwhile, Washington has opted out of the initiative, citing concerns over global market stability and legal risks associated with seizing frozen Russian assets.
Russian President Vladimir Putin has warned that Western efforts to utilize frozen funds will face consequences, as tensions over the loan’s terms escalate ahead of a key EU leaders’ meeting in Brussels.
