Prime Minister Sir Keir Starmer has stated that the United Kingdom's participation in the European Union's 90 billion euro (£78 billion) loan initiative for Ukraine would be highly beneficial for both UK-EU relations and domestic employment. Speaking to the media upon his arrival at the European Political Community (EPC) summit in Yerevan, Armenia, Starmer emphasised the multifaceted advantages of the scheme.
Benefits for Ukraine and the UK
Starmer explained that the loan would provide Ukraine with essential capabilities in the fifth year of its conflict with Russia. He noted, "It's very good for the UK, because of the capability that leads to jobs in the United Kingdom." The Prime Minister also highlighted the positive impact on UK-EU relations, which he described as crucial for ongoing discussions.
Co-Chaired Meeting on Ukraine
Sir Keir, alongside French President Emmanuel Macron, co-chaired a meeting focused on Ukraine. Attendees included Ukrainian President Volodymyr Zelensky, Italian Prime Minister Giorgia Meloni, Polish Prime Minister Donald Tusk, Norwegian Prime Minister Jonas Gahr Store, NATO Secretary-General Mark Rutte, European Commission President Ursula von der Leyen, European Council President Antonio Costa, and EU Vice President Kaja Kallas. Notably, Canadian Prime Minister Mark Carney participated as the first leader from a non-European country to attend the EPC summit.
Strengthening Defence Cooperation
During the summit, Starmer is expected to call for closer collaboration among allies to ensure Kyiv receives the military equipment necessary to sustain its defence against Russian aggression. The UK is also set to impose additional sanctions on Russian companies later this week, aiming to disrupt military supply chains, according to Downing Street.
Opportunities for British Defence Firms
Access to the loan initiative could create new opportunities for British defence companies to compete for contracts under the scheme. The UK's bid to join the initiative follows the EU's recent approval after the defeat of Hungarian Prime Minister Viktor Orban in elections, which ended a prolonged impasse. This move is part of Starmer's broader strategy to reset relations with the EU.
UK-EU Reset and Financial Contributions
Ahead of the EPC summit, Starmer called for the UK and EU to "go further and faster on defence" cooperation. Reports from The Times suggest that Brussels is pushing for Britain to agree to pay approximately £1 billion per year before detailed talks on further single market access can proceed. However, the UK government has not confirmed this, with a spokesperson stating, "We won't comment on ongoing negotiations."
The government plans to introduce legislation in the King's Speech that would allow the UK to follow EU single market rules without necessarily requiring a parliamentary vote on each regulation. This proposal has faced criticism from both the Conservative Party and Reform UK.
