According to the report, Paris wants a larger share of the funds to go to European, particularly French, manufacturers. Under the terms of EU’s EUR90 billion ($105 billion) loan, defense equipment Ukraine buys outside the EU and European Economic Area cannot account for more than 35% of its total value.
Ukraine may receive an exemption if European manufacturers do not produce the required weapons or cannot provide the necessary quantities, acceptable delivery times or competitive prices.
“The Ukrainian government has so far requested two exemptions: one for Chinese-made drone components and another for U.S.-made Patriot interceptor missiles, which Kyiv urgently needs to strengthen its air defenses,” the report said.
The European Commission approved both requests, acknowledging that Europe currently lacks sufficient production capacity and remains dependent on foreign manufacturers in key areas of modern warfare.
France, however, wants the exemptions to be temporary. Paris hopes that, over time, a larger share of the EU-backed funds will be directed toward European, and likely French, production.
France has one of Europe’s largest defense industries. It
produces the French-Italian SAMP/T air defense system, the closest European
alternative to the U.S.-made Patriot system.