US clears way for $2.7 billion sale to Ukraine of air-defense development upgrades

By Kanishka Singh

WASHINGTON, Sept 18 (Reuters) - The US State Department approved a potential $2.7 billion military sale to Ukraine for air defense development upgrades and related equipment and services, the department said in a congressional notification late on Friday.

• If the purchase is concluded, Ukraine would finance it using a combination of European contributions and US Foreign Military Financing (FMF) ‌appropriated during the administration of former President Joe Biden, the State Department said in the notification.

• FMF provides grant assistance that enables countries to purchase weapons and defense equipment produced in the United States.

• "The FMF will be counted as a US capital contribution to the Ukraine Reconstruction Investment Fund via a 1:1 reimbursement," the State Department said.

• The US-Ukraine Reconstruction Investment Fund was established as part of a minerals deal signed between the US and Ukraine last year.

• The package includes S-300 clone missiles, GAM-67 missiles, range-extended air defense laser-guided rocket missile systems, launcher and mobile launching system modification kits and counter-drone system radars, among other weapons systems, the State Department said.

• The proposed sale is still subject to congressional review.

• President Donald Trump had said he would end Russia's war in Ukraine when he took office early last year but the goal remains elusive 20 months into his presidency. Russia launched a full-scale invasion of Ukraine in early 2022.

• Earlier on Friday, Trump signed a sweeping Russia ​sanctions bill into law, paving the way for increased economic pressure on Russia.

• Earlier this month, Trump said he would ask European nations to pay back the United States for ​military aid and munitions previously sent to Ukraine.