France wants to limit exemptions allowing Ukraine to buy non-European weapons using a 90 billion euro European Union loan, Euronews reported.
EU member states approved the 90 billion euro Ukraine Support Loan in April to assist Kyiv during 2026 and 2027. The package provides 30 billion euros for economic support and 60 billion euros for military aid.
Loan conditions specify that Ukraine must spend at least 65 percent of procurement funds within the EU and European Economic Area. Kyiv can purchase at most 35 percent of any defence item outside those regions without an exemption.
Exemptions are permitted if no European equivalent exists, or if EU suppliers cannot manufacture required quantities in time, take too long, or charge excessive prices.
Ukraine has obtained two exemptions from the European Commission for Chinese drone components and American Patriot interceptor missiles needed for air defence.
The European Commission approved both requests after acknowledging that the EU currently lacks sufficient domestic production capacity.
French industrial priorities
France insists that all exemptions remain temporary, expecting funding to reorient toward European defense manufacturing over time.
Euronews noted that France has one of Europe's largest defence-industrial complexes, including the Franco-Italian SAMP/T air defence system, viewed as the closest European equivalent to Patriot.
The European Economic Area extends the EU single market to neighboring European nations, while the European Commission serves as the EU executive branch managing shared funding programs.
Opposition from European allies
The French stance faces pushback from nine European allies. In July, defence ministers from Sweden, the Netherlands, Germany, Denmark, Estonia, Poland, Latvia, Finland, and Lithuania sent a letter to EU foreign policy chief Kaja Kallas and EU Defence Commissioner Andrius Kubilius.
The ministers urged maximum flexibility for Ukrainian procurement, emphasizing that rapid approval of product schedules is vital, including the sensible use of exemptions for equipment made in third countries.
Kaja Kallas leads the EU diplomatic service, while Andrius Kubilius serves as European Commissioner for Defence and Space.
Recent funding tranches
At the end of July, Ukraine received a separate 3.47 billion euro tranche from the EU, Prime Minister Serhiy Koretzky confirmed.
Koretzky said the funds strengthened defence and urgent needs, noting that 45 billion euros is scheduled for Ukraine under the loan mechanism in 2026.
The tranche provides extra funding for missiles, Saab JAS 39 Gripen fighters, and long-range jet-powered drones.
The Saab JAS 39 Gripen is a Swedish multirole fighter aircraft designed for flexible combat operations and defense missions.
