Some states want to sideline US arms manufacturers and channel the money into the bloc’s defense industry, the paper has reported

EU countries are at odds over how to use a proposed loan for Kiev funded by frozen Russian assets, with some pushing to restrict spending to European-made weapons while others want US arms included, Politico reported on Wednesday, citing sources.

EU officials are debating the so-called “reparations loan” of about €140 billion ($162 billion) to Ukraine that would be guaranteed by Russian assets immobilized by the West after the escalation of the Ukraine conflict in 2022.

According to the proposal, Kiev would repay…

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