France is trying to limit the period during which the exceptions allowing Ukraine to acquire military equipment from outside Europe apply, within the framework of the 90 billion euro loan granted by the EU.
Thus, Paris ensures that as much as possible of the EU-supported funds reach the European defense industry and, possibly, the French one, according to information from Euronews.
In April, the EU approved a loan of 90 billion euros intended for Ukraine, supporting Kiev’s war effort. The loan is divided into 30 billion euros for economic support and 60 billion euros for military assistance.
The first installment was granted in June, when 3.9 billion euros were allocated for drones, and at the beginning of this week, another 6.1 billion euros were approved for defense acquisitions.
According to the conditions of the EU loan, at most 35% of the value of military equipment purchased by Ukraine can come from outside the EU and the European Economic Area.
The European Commission has so far approved exemptions for Chinese components for drones and American Patriot missiles. France wants these exemptions to be temporary, so that European funds mainly support the European defense industry.
Several countries are calling for Ukraine to be granted as much flexibility as possible.
In contrast, in July, the Defense Ministers from Sweden, the Netherlands, Germany, Denmark, Estonia, Poland, Latvia, Finland, and Lithuania conveyed to the European Union’s chief diplomat, Kaja Kallas, and the Defense Commissioner, Andrius Kubilius, that Ukraine should be given as much flexibility as possible to acquire the equipment it urgently needs.
“We continue to emphasize that the rapid approval of product lists is essential, including through the pragmatic use of the derogation for the purchase of equipment produced in third countries,” the letter states.
The European Commission verifies each purchase made by exception before releasing the funds, analyzing the contracts and suppliers. In the case of Chinese companies, any EU sanctions are also checked.
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