Croatia to Use EU SAFE Loans to Support Ukraine’s Defense Procurement

Croatia to Use EU SAFE Loans to Support Ukraine’s Defense Procurement
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ZAGREB / BRUSSELS – Croatia plans to use EU-backed defence loans to strengthen Ukraine’s military capabilities, Prime Minister Andrej Plenković told Ukrainian President Volodymyr Zelenskyy in a phone call on Tuesday evening.

According to a statement from the Croatian government, the support will be channelled through the Security Action for Europe (SAFE) instrument — a €150 billion loan-based programme designed to finance joint defence procurementamong EU member states.

“Prime Minister Plenković noted that Croatia will contribute its share to support Ukrainian defenders,” the statement said.

Croatia is among 18 EU countries that signaled interest in participating in the SAFE programme last week, though Zagreb has not yet disclosed the amount of funding it intends to request or specific procurement plans.


EU’s SAFE Mechanism and Ukraine’s Role

The SAFE facility allows member states to jointly purchase defence equipment, including ammunition and missiles, with the option to include Ukraine as a partner in procurement. EU Commissioner for Defence and Space Andrius Kubilius has encouraged capitals to involve Kyiv directly in their procurement proposals.

Other countries exploring the instrument include Bulgaria, Estonia, Latvia, and Lithuania. In its submission of interest, Bulgaria suggested the possibility of joint acquisitions with Ukraine, notably 155mm artillery ammunition, and welcomed participation by Ukrainian defence manufacturers.

“The country welcomes the possible inclusion of Ukrainian defence industry in any future joint acquisition of defence articles and other products with defence applications under the eligible categories of the SAFE instrument,” the Bulgarian statement reads.

EU member states have until the end of November to submit detailed proposals outlining how they plan to use SAFE loans.


Broader Transatlantic Context

Plenković and Zelenskyy also discussed a new U.S. initiative announced by President Donald Trump in mid-July, under which European allies would help finance American-made defence equipment supplied to Ukraine. The plan aims to expand Ukraine’s battlefield resources while stimulating European orders for U.S. defence products.


Ukraine’s Procurement Priorities

In June, Ukrainian Defence Minister Sergiy Boyev outlined Kyiv’s current defence needs to EU partners, including air defence systems, missiles, artillery, ammunition, and armoured platforms.

“We stand ready for mutually beneficial cooperation toward integrating Ukraine’s defence industry into the European ecosystem,” Boyev told member states.

As the war continues, SAFE is seen in Brussels as a potential cornerstone mechanism for coordinated European support to Ukraine’s military, while strengthening Europe’s own defence industrial base.