UK in talks to join EU's €90 billion Ukraine loan for defence orders

The United Kingdom is in talks to become part of the European Union's €90 billion ($105.13 billion) loan aimed at supporting Ukraine, enabling British defense companies to compete for military contracts funded by this loan. For the UK to be eligible, it must fulfill three conditions: establish a Security and Defence Partnership with the EU (set for May 19, 2025), provide substantial military and financial aid to Ukraine, and cover a portion of the interest on the loan. These negotiations occurred between British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen during a summit of the European Political Community in Armenia. Last month, the EU approved the loan, which addresses two-thirds of Ukraine’s military expenditure needs over the next two years amid the ongoing conflict with Russia. A spokesperson for the Commission noted that this marked the initial high-level dialogue following prior technical discussions.