The EU approved a loan of 90 billion. euros for Ukraine: they will use the money to buy weapons from Europe

“Defense products should in principle only be procured from companies from the EU, Ukraine or EEA and EFTA countries. If Ukraine’s military needs require the urgent delivery of a defense product that happens to be unavailable in the EU, Ukraine or an EEA-EFTA country, a set of targeted derogations would apply,” the EU Council announced.

Of the EUR 90 billion interest-free loan that the EU will provide to Ukraine, EUR 30 billion is intended for macroeconomic aid, and EUR 60 billion for investment in defense industrial capacities and the procurement of military equipment.

So far, the biggest obstacle to the agreement has been France’s insistence that only weapons and equipment produced in the European Union can be bought with this money.

The majority of members emphasized that European companies cannot provide everything that Ukraine needs for defense and that therefore it must be possible to buy from outside the EU and the European Economic Area (EEA) and the countries that make up the European Free Trade Association (EFTA).

The agreement reached today by the ambassadors of the member states will be the basis for negotiations with the European Parliament on the final text of the legal framework.

The EU will collect the funds for the loan to Ukraine on the capital markets, and the interest costs will be covered from the European budget. The political agreement of the 24 members was reached at the summit in December, while Hungary, Slovakia and the Czech Republic refused to participate in the loan. Therefore, the remaining EU members opted for a mechanism of enhanced cooperation in order to provide the necessary finances for the war-torn country.

“Today’s agreement shows that the EU continues to strongly support Ukraine and its people. These funds will enable the country to stand firm against Russian aggression. At the same time, we are sending a strong message that the sovereignty and territorial integrity of the country must be respected in accordance with international law,” said Cypriot Finance Minister Makis Keravnos, whose country presides. Council of the EU.