Developing countries that support Russia or Iran could lose EU aid, and European companies may receive preferential treatment in procurement financing in the future, EU foreign policy chief Kaja Kallas said on Monday.
Speaking ahead of a meeting of EU development ministers in Brussels, Kallas said the bloc must become "more strategic" in how it finances foreign aid in an era of intensifying geopolitical rivalry and conflict.
Kallas did not specify exactly how any new flexibility would be incorporated into policy.
"It's a very careful balance... not to withdraw everything, but also to keep in mind that Europe has interests," she said.
"If we have projects to support countries, and in fact it goes to our competitors, then we also have to look at how we can address that," Kallas emphasized.
The remarks come as EU leadership designs the future of the bloc's €300 billion geopolitical investment strategy, "Global Gateway," in the next seven-year EU budget. Controversy has arisen over an EU-backed project in Senegal worth over €320 million, which is likely to be awarded to a company linked to the Chinese government that was previously found to be in violation of the bloc's foreign subsidy rules.
