The European Union's investment instrument is investing €40 million ($45 million) in a special European defense fund, the first of its kind. This is being done to improve military capabilities. This was reported by Bloomberg, reports UNN.
The European Investment Fund, which provides access to finance for small and medium-sized businesses, will contribute to a fund being raised by Keen Venture Partners, which is targeting €125 million.
Europe is increasing military spending in the face of growing security threats posed by Russia's war in Ukraine and uncertainty over whether Washington will continue to support Kyiv.
Following a telephone conversation between US President Donald Trump and Russian President Vladimir Putin this week, many European leaders believe the US will seek to distance itself from the conflict.
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The EU has created a SAFE instrument with borrowing of up to €150 billion for investment in defense. Ukraine will receive support through increased military assistance and the integration of defense industries.