Romania, a member of NATO and the European Union, shares 650 kilometers of border with Ukraine. In the past year, fragments of Russian drones have repeatedly landed on Romanian territory. Additionally, some Romanian areas are in proximity to Ukraine's Danube River ports, which have been frequent targets of Russian attacks.
Under the loan agreement, Romania's defense ministry will have direct access to USD 700 million, while up to USD 220 million will be allocated to state-owned defense company ROMARM. ROMARM oversees 15 companies that produce a range of weapons and ammunition, from gunpowder to guided missiles.
Romania aims to increase its defense spending to 2.5% of its gross domestic product (GDP). The new loan agreement is part of efforts to enhance the country's defense purchasing plan amid escalating regional tensions.
(jh)
Source: Reuters