Some countries want to sideline US arms manufacturers and channel the money into the bloc\u2019s defense industry, the paper has reported<\/p>\n
EU countries are at odds over how to use a proposed loan for Ukraine funded by frozen Russian assets, with some pushing to restrict spending to European-made weapons, while others want US arms included, Politico reported on Wednesday, citing sources.
\nEU officials are debating a so-called \u201creparations loan\u201d of about \u20ac140 billion ($162 billion) for Kiev, which is to be guaranteed by Russian assets that were immobilized by the West after the escalation of the Ukraine conflict in 2022.
\nAccording to the proposal, Kiev would repay only if Moscow covers the damages incurred in the conflict. Moscow has repeatedly condemned Western efforts to use its frozen funds to aid Ukraine, calling the move \u201ctheft.\u201d
\nAlthough the EU has not yet agreed on the plan, Politico said \u201cfriction is already growing over whether to attach conditions to the loan.\u201d One idea being pushed by France and, to a lesser extent, Germany and Italy, is to ensure the money \u201cflows back as much as possible into the EU\u2019s defense sector\u00a0\u2013 and not across the Atlantic.\u201d<\/p>\n
Read more<\/p>\n
US opposes seizing Russian assets \u2013 Bloomberg<\/p>\n
According to Politico, this pressure has led to draft summit conclusions emphasizing \u201cthe importance of reinforcing the European defense industry\u201d with the loan. However, tensions are expected to sharpen at an EU leaders meeting in Brussels on Thursday, the report added.
\nCritics quoted by Politico argue that such limits \u201csmack of hypocrisy.\u201d\u00a0\u201cIf the aim is to keep Ukraine in the fight, you need to keep the criteria open,\u201d a senior EU diplomat told the paper.
\nOne particular concern is that the \u2018Buy European\u2019 clause\u00a0could block Kiev from purchasing crucial American weapons, including US-made Patriot air defense systems, which the bloc does not produce.
\nBloomberg reported this week that Washington will not join the EU-led initiative, citing concerns that the move could unsettle global markets. Western officials have also\u00a0 warned\u00a0for months\u00a0that outright confiscation of frozen Russian assets \u2013 estimated at around $300 billion \u2013 would be illegal and undermine the West\u2019s credibility.
\nRussian President Vladimir Putin has said \u201cthose who are smarter\u201d in the West oppose seizing Russian assets, while warning that Western moves to confiscate the funds would not go unpunished.<\/p>\n","protected":false},"excerpt":{"rendered":"
Some countries want to sideline US arms manufacturers and channel the money into the bloc\u2019s defense industry, the paper has reported EU countries are at odds over how to use…<\/p>\n","protected":false},"author":1,"featured_media":20934,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-20933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t