The UK is considering joining a major European Union loan scheme to support Ukraine, with Prime Minister Keir Starmer saying the move could strengthen defence cooperation, create jobs and improve relations with European partners.
The proposed €90 billion (£78 billion) initiative, approved by EU leaders, aims to provide financial and military support to Ukraine over the next two years as the war with Russia continues.
UK Considers Role in EU Ukraine Support Plan
Speaking ahead of the European Political Community summit in Armenia, Starmer confirmed the UK is in discussions about participating in the scheme.
He said joining the initiative would help Ukraine secure vital defence capabilities while also offering economic benefits for British industry through potential contracts linked to the programme.
The EU-backed funding plan is seen as a key element of Western support for Ukraine as the conflict enters its fifth year.
Defence and Economic Benefits Highlighted
Starmer emphasised that the scheme could deliver a “triple benefit” by supporting Ukraine’s military needs, strengthening UK-EU relations and generating employment in the UK.
A significant portion of the funding is expected to be directed toward defence, including weapons systems and military infrastructure, while the remainder will support Ukraine’s broader economic stability.
The UK government is exploring how participation could position British companies to contribute to these efforts.
Summit Talks Focus on Ukraine and Security
The discussions are taking place at the European Political Community gathering, which brings together dozens of European leaders to address shared challenges.
Starmer held talks with Volodymyr Zelensky, reaffirming the UK’s commitment to supporting Ukraine and maintaining pressure on Russia.
He said the UK is ready to work with allies to ensure continued support for Ukraine and to pursue a “just and lasting peace” aligned with Ukrainian interests.
Wider Security Issues on Agenda
Alongside Ukraine, the UK is also expected to discuss broader security concerns with European partners, including tensions in the Middle East and the stability of key global shipping routes.
Downing Street has indicated that further sanctions on Russian companies are likely to be announced, targeting supply chains linked to the war effort.
The government is also monitoring developments in strategic regions such as the Strait of Hormuz, where disruptions to oil shipments could have global economic consequences.
Resetting UK-EU Relations Post-Brexit
The potential move to join the EU loan scheme forms part of Starmer’s broader effort to reset relations with the European Union following Brexit.
While the government has ruled out rejoining the EU, it has signalled a willingness to deepen cooperation on security, defence and economic matters.
However, the approach has faced criticism from opposition parties, who argue that closer alignment with EU policies could undermine UK sovereignty.
Ongoing Western Support for Ukraine
Since Russia’s full-scale invasion of Ukraine in 2022, Western nations have provided extensive military and financial assistance to Kyiv.
The EU loan scheme represents one of the largest coordinated funding efforts to date, aimed at sustaining Ukraine’s defence and economic resilience.
For the UK, participation would mark a significant step in post-Brexit collaboration with European partners on foreign policy and security.
As discussions continue, the decision will play a key role in shaping the UK’s international strategy and its evolving relationship with the EU.