The European Investment Bank (EIB) is in talks to invest in defense companies amid increased urgency to expand the European defense industry, Bloomberg reported.
The colossal output of the Russian military-industrial complex since Moscow launched its full-scale invasion of Ukraine has put the performance of the European defense industry in the foreground.
The EU failed to fulfill its promise to deliver 1 million artillery shells to Ukraine between March 2023 and 2024. At the same time, Russia is expected to produce almost three times as much artillery ammunition as the West this year.
The move would require the EIB to expand its definition of dual-use goods, which are categorized as goods, software and technology that have both civilian and military uses.
The EIB launched its Strategic European Security Initiative in 2022, paving the way for investment in technology, civil security and drones. In this way, funding is provided "for dual-use projects with a primarily civilian purpose," according to Bloomberg.
Arms and ammunition are "currently on the list of excluded activities and are not eligible for funding", as are other items that are defined as "intended for military or police use".
The EIB is the credit arm of the European Union and usually provides financing for initiatives in the field of sustainable development, innovation, urban development, small and medium-sized enterprises and renewable energy.
Since the start of Russia's full-scale invasion of Ukraine in 2022, the EIB has lent over €1.7 billion to help finance emergency repairs to the country's destroyed infrastructure. /BGNES
