EU ambassadors close to final approval of €90 billion loan to Ukraine - Politico
European Union ambassadors have almost reached a final agreement on granting Ukraine a €90 billion loan after settling a dispute over the participation of third countries in arms purchases.
This was reported by Politico, according to Censor.NET.
As noted, the key obstacle remained the issue of allowing third countries to participate in defense contracts financed by credit funds. This refers, in particular, to the purchase of weapons outside the European Union.
The draft agreement provides for the possibility of Ukraine purchasing military equipment from the US, the UK, and other partners, provided that there is no equivalent in the EU or there is an urgent and immediate need.
The list of permitted purchases includes air defense and missile defense systems, ammunition, fighter jet equipment, and deep strike capabilities, including missiles and long-range drones.
If the UK wishes to participate in contracts that fall outside this list, London must make a financial contribution to cover interest payments on Ukraine's loan. According to the publication, the size of the contribution should be proportional to the potential profits of British defense companies.
Blocking of the decision by France
France had previously blocked the loan agreement, insisting that countries paying interest on the loan should receive maximum benefits from defense contracts. To remove objections, wording was added to the draft agreement stating that any agreement with a third country must be based on a balance of rights and obligations, and that such countries cannot have the same advantages as EU member states.
Due to Paris' position, control over the fulfillment of procurement conditions outside the EU has also been tightened. Ukraine will be required to provide reasonably accessible information confirming the need for such an exception. The final decision will be made after verification by the European Commission and consultation with the Expert Group on Ukraine's Defense Industrial Potential.
What preceded it?
- Earlier, it was reported that the European Council agreed to provide Ukraine with a loan of €90 billion for 2026–2027 based on EU borrowing on capital markets secured by EU budget reserves.
- On January 14, the European Commission approved a package of legislative proposals that will allow Ukraine to receive a loan of €90 billion from the EU to cover its financial and military needs in 2026-2027.
