The Council of the European Union approved this Wednesday, February 4, a negotiating position that allows Ukraine to use the 90 billion euro loan to buy weapons from third countries, if it is not available on European soil.
This position was approved this afternoon by the member states’ ambassadors to the European Union (EU) and will now be negotiated with the European Parliament, based on the proposal made by the European Commission in January.
In this proposal, the community executive proposed that, of the 90 billion euros in loans to Ukraine, 60 billion were allocated to the purchase of weapons and the remaining 30 billion to budget support.
The EU Council, in the position adopted today, agrees with the values proposed by the European Commission and emphasizes that the 60 billion euros allocated to armaments must be used, “in principle”, in purchases made from companies in the European Union (EU), Ukraine or countries that belong to the European Economic Area (EEA) and the European Free Trade Association (EFTA): Norway, Iceland and Liechtenstein.
However, “if Ukraine’s military needs justify the urgent delivery of defense products that are not available” in those countries, “a set of specific derogations” would be applied.
“This may include, among others, air and anti-missile defense systems — including interceptors — as well as ammunition and spare parts for combat aircraft, and deep strike capabilities,” reads the position adopted by the EU Council.
This means, in practice, that the funds in question could be used to purchase weapons from the United States if this equipment is not available in Europe, as is the case with the Patriot air defense system, used by Ukraine.
On the other hand, at a time when the United Kingdom has already expressed interest in joining this loan – to guarantee that Ukraine could also obtain supplies from British companies, regardless of the availability of the same equipment on European soil –, the EU Council, in the adopted position, admits that some third countries can join the mechanism.
However, these countries would have to commit to “providing a fair and proportional financial contribution to the costs arising from taking out the loan” and the association would be limited to a specific set of products.
In the statement, the EU Council argues that this loan will “contribute to the strengthening of the European and Ukrainian Defense industries” and states that the 90 billion euros will be financed through the issuance of joint debt.
“Loan repayment [à Ucrânia] it will only be required when Russia pays war reparations to Ukraine”, he says.
Slovakia, Czechia and Hungary are excluded from the costs associated with this loan, says the statement, because they “chose not to participate” in this financing mechanism.
Quoted in the statement, Makis Keravnos, Finance Minister of Cyprus, the country that currently holds the rotating presidency of the EU Council, considers that the agreement reached today between ambassadors shows that the EU “will continue to act to support Ukraine and its people”.
“The new financing will allow the country to remain resilient in the face of Russian aggression. At the same time, we are sending a strong signal that the sovereignty and territorial integrity of States must be fully respected, as stipulated by international law”, argues the official.
The EU Council will now enter into negotiations with the European Parliament on this loan with the aim of ensuring that the first funds can be made available to Ukraine in April.
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