UK eyes joining EU's 90 billion euro Ukraine loan to tap defence orders
UK eyes joining EU's 90 billion euro Ukraine loan to tap defence orders
ReutersMon, May 4, 2026 at 6:00 PM UTC
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British Prime Minister Keir Starmer, during a bilateral meeting with Ukrainian President Volodymyr Zelenskiy ahead of the European Political Community summit in Yerevan, Armenia. Picture date: Sunday May 3, 2026. Stefan Rousseau/Pool via REUTERS
BRUSSELS, May 4 (Reuters) - Britain is in talks to join the European Union's 90 billion euro ($105.13 billion) loan to Ukraine to qualify for Kyiv's defence orders that the loan finances, but will have to cover some interest payments on the borrowing to be eligible, the European Commission said.
"Today marks the first high-level discussion on the UK’s potential participation in the 90 billion euro Ukraine Support Loan, following technical exchanges between the UK Government and the Commission," a Commission spokesman told reporters.
The discussions, between European Commission President Ursula von der Leyen and British Prime Minister Keir Starmer at a European Political Community summit in Armenia, are a further sign of deepening European defence ties under rising U.S. pressure.
The loan, approved by the EU last month, is set to cover two-thirds of Ukraine's needs for the next two years, with the bulk of that amount earmarked for military spending as Kyiv defends itself against Russia's four-year war.
Some of that cash could be spent on British defence equipment if London meets three criteria, the Commission said.
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Britain has to have a Security and Defence Partnership with the EU, which it entered into on May 19, 2025 and has to provide significant financial and military support to Ukraine - a condition it will likely meet after a Commission assessment.
The final hurdle is that it will have to cover some of the interest on the 90 billion euro EU loan, proportionately to the value of contracts awarded to it by Ukraine.
"Following UK’s confirmation of its interest in participating in the Ukraine Support Loan, the Commission stands ready to move swiftly with the corresponding necessary steps," the Commission spokesman said.
European countries, including Germany, France and Britain, have recently come under further pressure from Washington after refusing to join the U.S. and Israel's war on Iran.
($1 = 0.8561 euros)
(Reporting by Muvija M; Editing by David Holmes and Susan Fenton)
Source: “AOL Money”
