Ukraine's leading allies in Europe intend to approach the European Union regarding loans worth tens of billions of euros for the joint procurement of weapons for Ukraine and to strengthen their own defense, Politico reports, writes UNN.
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Ahead of the deadline for submitting applications for the new €150 billion program (SAFE), which provides for weapon loans, several EU countries told the publication that they are "considering using these funds to help Ukraine in its defense against a full-scale Russian invasion."
This lending program was proposed by the European Commission in March as part of its broader ReArm Europe program and aims to strengthen Europe's defense industry and reduce the bloc's long-standing military dependence on the US.
Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, and Lithuania have officially expressed interest in receiving loans, EU defense official Thomas Regnier told reporters on Tuesday.
Other countries, including the Czech Republic, Latvia, Bulgaria, and Greece, said they would do so by the deadline set for Tuesday midnight.
By jointly procuring weapons under this program, countries, as the publication notes, can obtain a lower price than if they acted separately and then supplied weapons to Ukraine.
France is also likely to apply for loans, while Germany, Sweden, and the Netherlands are expected to decline, according to sources familiar with these governments' plans.
However, even countries that do not take out loans can reduce the cost of supplying weapons by participating in joint procurements, the publication writes.
"Countries are also exploring the possibility of direct procurement of weapons from Ukrainian companies, which is encouraged within SAFE," the publication writes. This would allow Kyiv to "scale up defense production and technological integration with the EU," a Ukrainian diplomat told the publication.
EU Defense Commissioner Andrius Kubilius wrote on Thursday that at least 20 countries would request up to 100 billion euros under this program. The final amount will be known on Tuesday, when the deadline for loan applications expires, although Brussels has made it clear that even latecomers will not be rejected.
Brussels proposed a 45-year repayment period for loans and advance payments of up to 15%. These low-cost long-term loans will be financed by EU debt, using its AAA credit rating.
Seeking to attract Ukraine's allies to participate in this program, Kubilius and EU Economy Commissioner Valdis Dombrovskis urged EU countries to use SAFE to purchase weapons for Ukraine.
"We strongly recommend that you consider how to involve Ukraine in your plans. Procurements for Ukraine, with Ukraine's participation and in Ukraine, can be crucial for our collective security," they said in a letter to EU member states earlier this month.
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Countries with high debt and budget deficits, such as Austria and Italy, are less willing to take out loans, fearing an increase in existing debt, as this could delay their exit from the EU's punitive procedure for countries that have overspent, officials told the publication.
France, a long-time advocate of increased EU defense spending, is likely to take out loans despite internal budget constraints. Belgium, also burdened by high debt, will request between 7 and 11 billion euros under this scheme, a source familiar with the situation said.
Greek Prime Minister Kyriakos Mitsotakis said on Monday that his country would request a 1.2 billion euro loan under this program.