The UK is moving to join a €90 billion European Union loan scheme for Ukraine, with Prime Minister Keir Starmer saying the benefits outweigh the costs, as he pushes for closer ties with Europe at a summit in Armenia this week.
The proposal forms part of the government’s wider effort to strengthen defence cooperation with European partners while supporting Ukraine’s war effort. Speaking at the European Political Community summit in Yerevan on Monday (4 May), Sir Keir said the scheme would provide Ukraine with urgently needed military capability as the war enters its fifth year, while also delivering economic benefits for the UK.
He argued that joining the loan would allow British defence firms to access contracts funded through the programme, helping to support jobs at home.
The €90 billion package, approved by EU leaders last month, is expected to cover a significant portion of Ukraine’s financial and defence needs over the next two years, with most of the funding directed towards military support.
Sir Keir also used the summit to push for closer relations with the EU, describing deeper cooperation as being in the UK’s national interest. He said the benefits of working more closely with the bloc extended beyond Ukraine to defence, security and the economy.
The move comes amid growing concern among European leaders over tensions with the United States, particularly over military policy and support for Ukraine.
Sir Keir acknowledged that traditional alliances were under strain, warning that “there is more tension… than there should be” and calling for greater unity among European countries.
If negotiations succeed, the UK could contribute up to £400 million to the scheme, with funding expected to come from the government’s existing support package for Ukraine.
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