UK plans to join EU’s €90bn loan for Ukraine – Reuters
The UK plans to begin negotiations on joining the EU's £78 billion (around €90 billion) loan programme for Ukraine.
Source: Reuters, citing a statement from the UK government
Details: The UK's intentions are further evidence of deepening European defence ties amid increasing pressure from the US.
The UK government said it intends to open talks on joining the EU loan scheme for Ukraine valued at £78 billion.
UK Prime Minister Keir Starmer is expected to say on Monday 4 May at the European Political Community summit in Yerevan – established after Russia's full-scale invasion in 2022 – that the UK wants to work with the EU to help Ukraine access critically needed military equipment.
The UK government added that additional funding could also create opportunities for British businesses to meet Ukraine's urgent needs, particularly in the defence sector.
The UK, which has imposed a wide range of sanctions on Russia since the beginning of the full-scale war in 2022, is also set to announce a new package of "stinging sanctions" against Russian companies this week aimed at disrupting military supply chains.
Starmer's visit marks the first trip by a UK leader to Armenia since former prime minister Margaret Thatcher visited in 1990. It comes as US President Donald Trump's administration urges Europe to take greater responsibility for the continent's defence.
European countries, including Germany, France and the UK, have recently faced additional pressure from Washington after refusing to join the US and Israel in military action against Iran.
"When the UK and the European Union work together, we all reap the benefits – and in these volatile times we need to go further and faster on defence to keep people safe," Starmer said in a statement.
He had previously called for deeper defence integration across Europe to reduce NATO's reliance on the US, hinting at closer alignment with the EU single market and stronger economic ties six years after Brexit.
Background:
- The EU is considering tighter conditions for a €90 billion loan to Ukraine, under which part of the disbursements would be contingent on the introduction of unpopular changes to corporate taxation.
- European Commission President Ursula von der Leyen said that the first defence tranche for Ukraine from the €90 billion EU loan will be disbursed this quarter – it will amount to around €6 billion and will be allocated to Ukrainian-made drones.
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