The US State Department announced on Monday that it would extend a $2 billion loan to Poland in order to bolster the country's ongoing efforts to modernize its defense capabilities.

"Today, the United States is proud to announce the signing of a milestone $2 billion Foreign Military Financing (FMF) direct loan agreement to support Poland’s defense modernization," the State Department said in a press release.  

The Biden administration is allocating a maximum of $60 million in Foreign Military Financing (FMF) to offset the expenses associated with the loan, with the aim of expediting Poland's critical military acquisitions of defense equipment and services from the US, as stated in the announcement.

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The announcement comes four days after the Prime Minister of Poland announced that they will cease sending weaponry to Ukraine in order to prioritize their own defense. This decision comes shortly after Warsaw called in Ukraine's ambassador, leading to a dispute over grain exports.

Responding to a question on whether Warsaw would maintain its support for Kiev despite the disagreement over grain exports, Mateusz Morawiecki said: "We are no longer transferring weapons to Ukraine because we are now arming Poland with more modern weapons."

Poland has consistently stood as a strong ally of Ukraine since Russia launched its special military operation in February 2022. Poland also serves as one of Kiev's primary weapons sources and has provided extensive state assistance to the approximately one million Ukrainian refugees it hosts.

The conflict between Warsaw and Kiev stemmed from Poland's decision to prohibit the import of Ukrainian grain, a measure taken to safeguard the welfare of its agricultural sector. These tensions have escalated in the past few days.

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