BRUSSELS ― European countries haven’t yet agreed whether to give Ukraine a €140 billion loan to buy weapons to fight Russia — but that’s not stopping them from debating what strings to attach to it.

One idea, pushed by the EU’s three biggest countries, is to ensure that loan money spent on weapons flows back as much as possible into the EU’s defense sector — and not across the Atlantic.

Tensions are expected to sharpen during a meeting of EU leaders in Brussels on Thursday, where prime ministers and presidents aim to task the Commission with putting forward a legal proposal outlining the loan.

While many key issues related to the operation have yet to be agreed, friction is already growing over whether to attach conditions to the loan, which will be financed using frozen Russian assets. The proceeds of the credit will be used for both defense needs and ordinary budget support ― but the exact breakdown hasn’t yet been discussed.

In order to boost their burgeoning defense industries while helping Ukraine, France and to a lesser extent Germany and Italy support using the loan to buy European weapons for Kyiv. The idea was first proposed by German Chancellor Friedrich Merz in a Financial Times op-ed in September.

“Such a comprehensive programme must also help to strengthen and expand the European defence industry,” he wrote. “That would serve both our collective security and European sovereignty.”

However, a rival camp that includes the Netherlands and the Nordic and Baltic states argues that Ukraine should have free rein to spend the money according to its needs ― including purchasing weapons produced by U.S. companies.

Following pressure from Berlin and Paris, the draft conclusions for the summit refer to “the importance of reinforcing the European defence industry” with the loan.

Critics say this approach smacks of hypocrisy.

“If the aim is to keep Ukraine in the fight, you need to keep the criteria open,” said a senior EU diplomat.

They claim that attaching a “Buy European clause” would prevent Kyiv from accessing much-needed weapons such as the Patriot missile defense system that are only produced in the U.S.

“I hope that they can buy more and more weapons from Europe but we know that we don’t have all those capabilities and weapons in Europe that they need. So it’s reality that they also must be allowed to buy from the U.S., if needed,” Finnish Prime Minister Petteri Orpo said in an interview with POLITICO.

Divisions on this issue emerged last week during a dinner of EU defense ministers, according to an EU official.

Former Lithuanian Defense Minister Dovilė Šakalienė ― who stepped down on Wednesday over disagreements with the country’s prime minister on the defense budget ― supported opening the Ukraine loan to U.S equipment in an interview with POLITICO.

“If we can use the reparation loan to fund what Ukraine needs the most, this is great, and it can be great if it could be used to cover the most urgent needs of Ukraine, including the weapon systems made by United States.”

She referred to a NATO initiative ― the Prioritized Ukraine Requirements List ― that envisages the U.S. selling weapons to Kyiv provided that European allies pay for them.

Tim Ross contributed to this report.