Brussels unveils plan to fill up Ukraine’s war chest with billions to spend on weapons
politico.eu • • world
Key Points:
- The European Commission has proposed a €90 billion interest-free loan to Ukraine to prevent financial collapse amid ongoing conflict with Russia, with about one-third allocated for budget needs and the remainder for defense spending.
- The loan aims to be disbursed over two years starting in April, contingent on EU lawmakers' approval, and is critical for unlocking further International Monetary Fund loans to ensure Ukraine's financial stability.
- The proposal includes a compromise on defense spending rules, favoring EU-based arms manufacturers but allowing Ukraine to purchase essential weapons from outside the EU if unavailable domestically, addressing divisions among member states.
- Ukraine is only required to repay the loan if it receives reparations from Russia, with the EU considering using frozen Russian assets to cover repayment costs, although
