US Agrees USD2bn Loan To Finance Defence Modernisation

The US State Department has committed to a USD2.0bn Foreign Military Financing (FMF) direct loan agreement for Poland to assist with the country's defence modernisation. The State Department published a noteexplaining the reasons for the deal and what the loan would be used for. The agreement comes in the wake of Poland significantly drawing down its military stockpiles to provide weaponry to Ukraine for use in its defence against Russia's invasion. Much of Poland's Soviet-era stockpiles have been divested, resulting in reduced supplies.

• The issue of Polish military support for Ukraine has garnered headlines in recent days, after PM Mateusz Morawieckistated that Poland was no longer supplying military equipment to Ukraine. President Andrzej Duda went on to clarify Morawiecki's remarks pertaining solely to new weaponry, rather than existing equipment. Nevertheless, the row that has also encompassed grain exports from Ukraine to Poland, has soured relations somewhat.
• US Ambassador to Poland Mark Brzezinksi tweets: "The United States is proud to announce the signing of a major $2 billion Foreign Military Financing (FMF) loan agreement to support Poland's defense modernization. Poland is a steadfast U.S. ally and its security is crucial to the collective defense of NATO's eastern flank."