UK to Start Talks on Joining EU's £78 Billion Loan for Ukraine
UK to Join EU's £78bn Loan Talks for Ukraine

The United Kingdom is set to initiate negotiations to join the European Union's 90 billion euro (£78 billion) loan programme for Ukraine, as the government seeks to strengthen support for Kyiv and enhance defence cooperation with the bloc.

Prime Minister Sir Keir Starmer will address leaders at the European Political Community summit in Yerevan, Armenia, on Monday, emphasising Britain's desire to collaborate more closely to ensure Ukraine receives the military equipment necessary to counter Russia's ongoing invasion.

The move to participate in the loan scheme, recently approved by the EU after Hungarian Prime Minister Viktor Orban's electoral defeat ended a prolonged deadlock, forms part of Starmer's broader reset of relations with Brussels.

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Before his visit to the European Political Community summit—only the second by a British leader to the Caucasus nation and the first in over 25 years—Starmer called for the UK and EU to "go further and faster on defence" cooperation. He noted that access to the initiative could create opportunities for British defence firms to compete for contracts under the scheme.

Downing Street also announced that the UK will impose further sanctions on Russian companies later this week to disrupt military supply chains.

Starmer stated: "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. That is why we are beginning negotiations with the EU to ensure Ukraine gets the equipment it needs to defend its freedom, while driving opportunities for British industry to play its full part. I will always act in our national interest: protecting our security, supporting our allies, and delivering jobs and stability at home."

The Prime Minister has indicated a desire for closer defence collaboration with the EU, even after talks about the UK potentially joining Brussels' 150 billion euro (£130 billion) Security Action for Europe rearmament fund collapsed last year due to the high cost of entry.

Writing in The Observer ahead of his Armenia trip, Starmer acknowledged that Brexit had "damaged our economy" and stressed that strengthening economic ties with the continent is crucial for recovery.

No 10 confirmed that the UK and EU, which will hold another joint summit this summer, will negotiate the parameters of access to the bloc's loan for Ukraine in the coming weeks. The EU approved the financial boost last month after Hungary lifted its veto, providing vital support to keep Ukraine afloat for the next two years.

Starmer is expected to hold bilateral meetings with several European counterparts on the sidelines of the EPC. On Sunday, he met Ukrainian President Volodymyr Zelensky in Yerevan, where Zelensky thanked the King for his "strong words" on Ukraine's defence during his state visit to the United States, and praised UK sanctions against Russia and efforts to counter the shadow fleet.

The EPC, formed in 2022 following Russia's full-scale invasion of Ukraine, convenes as US President Donald Trump has shifted his focus from that conflict to the Middle East. The fallout from the Iran war will also feature prominently on the agenda, and Starmer will urge action to limit economic impacts and de-escalate tensions. He will discuss with allies how best to contribute to long-term security in the Strait of Hormuz, a vital oil and gas shipping route whose blockade has strained global economies.

The Prime Minister's trip precedes local elections this week, where voters will deliver their first verdict on his government.

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