The United States has signed a $2 billion direct loan financing agreement to support Poland’s defense modernization efforts.

The U.S. Department of State announced this on September 25.

“Poland is a stalwart U.S. Ally, and Poland’s security is vital to the collective defense of NATO’s Eastern Flank,” the statement reads.

The statement also mentions “Warsaw’s central support role in facilitating international assistance to neighboring Ukraine.”

The U.S. noted that Poland continues to demonstrate leadership in NATO on meeting the 2014 Wales Summit Defense Investment Pledge.

Poland plans to significantly expand the Polish Armed Forces and is implementing a defense modernization program.

In addition, Poland hosts Allied and U.S. forces, including the U.S.-led NATO Battlegroup and U.S. V Corps Headquarters (Forward), and actively participates in NATO missions across the region.

The U.S. government is providing up to $60 million in FMF for the cost of this loan.

This should help accelerate Poland’s defense modernization by supporting urgent procurements of defense articles and services from the United States.

Loan proceeds will further advance Poland’s military modernization effort across a wide range of capabilities, substantially contributing to strengthening the defense and deterrence of NATO’s Eastern Flank.

Previously, the President of Poland Andrzej Duda has supported further arms transfers to Ukraine.

It is worth noting that Poland had been helping Ukraine build up its defense capabilities even before the full-scale Russian invasion.