France seeks to steer EU Ukraine arms loan to benefit domestic defense industry

France hopes to line its own arms manufacturers’ pockets with a €90 billion European Union loan to Ukraine by limiting Kiev's ability to procure weapons from outside the bloc, according to Euronews.

After overcoming Hungary’s opposition, the EU member states in April approved the €90 billion Ukraine Support Loan, aimed at propping up Kiev’s war effort in 2026 and 2027; €60 billion of the total sum has been earmarked for arms procurement.

The scheme, which is backed by joint EU borrowing on the capital markets, is premised on the assumption that it would be repaid when Ukraine secures reparations from Russia – a prospect Moscow has dismissed as “unrealistic.”

In an article on Tuesday, Euronews claimed that France is seeking to place a time limit on wavers allowing Ukraine to purchase weapons from outside the EU using EU-backed funds.

At present, Kiev can request an exemption if there is no EU-made system on offer that meets its immediate needs. According to the publication, Ukraine has so far made use of this mechanism on at least two occasions: when sourcing Chinese-made drone components and US-made Patriot interceptor missiles.

In early May, then-UK Prime Minister Keir Starmer announced London’s intention to also gain access to military contracts funded through the EU loan, despite the UK not being part of the bloc.

Following the escalation of the Ukraine conflict and amid the subsequent EU-wide rearmament drive, a number of European arms manufacturers have seen their profit margins surge.

Shares in Rheinmetall, Europe’s largest defense contractor, for instance, have risen more than tenfold over the past six years. Earlier this month, the company reported a nearly 70% increase in second-quarter revenue at €3.29 billion, having more than doubled its operating profit to €562 million.

RT’s Chay Bowes believes that behind a veneer of self-righteous talk lies ulterior motives, and that France is ultimately looking to funnel billions into its own military industrial complex.

Watch Bowes’s report in full below: