Paris wants to ramp up the bloc's military industry as it pushes for greater self-reliance amid a rift with the US over Greenland, the newspaper has reported

France has clashed with several EU nations over a proposal that would allow Ukraine to use an EU-backed loan to buy British Storm Shadow missiles, The Telegraph reported on Monday, citing diplomatic sources. Paris has consistently pushed for preferential treatment for the EU's military industry on procurements destined for Kiev.

In December, EU leaders approved a 90 billion ($107 billion) loan to cover Kiev's military needs and budgetary gap, with spending rules that prioritize EU-made weapons before allowing purchases from outside the bloc. According to The Telegraph, a coalition of 11 capitals has now proposed loosening the rule so Ukraine can more easily buy weapons such as Britain's long-range Storm Shadow cruise missiles, which are in short supply.

France, however, has emerged as an "obvious opponent" to the plan, a diplomatic source told the newspaper. The outlet noted that Paris is the center of the EU's drive for "strategic autonomy" amid concerns about overreliance on US defense after a rift with Washington over its controversial push to acquire Greenland.

Under the current design of the 90 billion loan, spending on weapons would follow a four-layer procurement cascade that prioritizes Ukrainian producers first, then EU defense firms, followed by partner countries such as the UK, with suppliers outside Europe - including the US - treated as a last resort, according to the article. Ukrainian officials have reportedly estimated that around 24 billion of equipment this year will have to come from suppliers outside the EU.

A diplomatic source told The Telegraph that the aim of Britain and its partners was to keep the system "open enough for the UK" to ensure that reaching the third layer of the cascade "is not so hard."

NATO Secretary-General Mark Rutte earlier warned that the EU loan should not be constrained by "buy European" rules, while acknowledging the bloc "cannot fully supply everything Ukraine needs to defend itself today and deter tomorrow." 

Moscow has condemned Western arms supplies as prolonging the conflict, while Russian Foreign Ministry spokeswoman Maria Zakharova has suggested that the 30 billion portion of the EU loan earmarked for Ukraine's budget support would be embezzled by local officials.