Prime Minister Sir Keir Starmer is set to open talks with the European Union about the UK joining a substantial £78 billion (€90 billion) loan scheme to support Ukraine. The announcement comes ahead of a key meeting with EU leaders in Yerevan, Armenia, on Monday as part of a strategic reset in UK-EU relations amid the ongoing conflict in Ukraine.
Loan Scheme Backed By EU
The EU-approved loan programme was authorised in April following the end of Hungary’s veto led by Viktor Orbán. It aims to help Ukraine manage its budget and bolster defence spending in the face of Russia’s invasion.
Starmer Pushes For Deeper Defence
At the European Political Community summit, Sir Keir will urge EU leaders to enhance military cooperation and expedite deliveries of essential equipment to Ukraine. He stressed the need for the UK and EU to “go further and faster on defence” to maintain security in volatile times.
Opportunities for UK Defence Industry
The Prime Minister highlighted prospects for British defence firms to compete for contracts connected to the loan scheme. He also indicated plans for additional sanctions on Russian companies to disrupt their military supply chains.
Historic UK Visit To Armenia
Sir Keir is the first British prime minister to visit Armenia in over 25 years, using the summit platform to forge closer ties with European leaders within the 47-member forum established in response to the Ukraine war.
Ongoing Negotiations With Brussels
Discussions will continue in the coming weeks to define terms for the UK’s involvement in the EU-backed Security Action for Europe, a €150 billion rearmament fund that stalled last year over cost concerns.
Sir Keir Starmer said: “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.”
