UK Joins EU €90bn Loan to Boost Arms Supplies to Ukraine

BRUSSELS — Britain on July 13 agreed to join the European Union’s €90 billion support loan for Ukraine, enabling UK firms to win more contracts to supply weapons and equipment funded by the programme.

Prime Minister Keir Starmer said the arrangement will help Ukraine defend itself against Russian aggression while “backing British defence companies, supporting skilled jobs and strengthening our national security.” He added that working with European allies ramps up support for Ukraine and increases pressure on Russia.

Under the deal, Britain will make “a fair and proportionate contribution” to the borrowing costs tied to the value of contracts awarded to UK companies, Brussels and London said. The move underscores ongoing efforts by the EU and post‑Brexit Britain to deepen cooperation despite the UK’s 2020 exit from the bloc.

The EU began disbursing the two‑year loan in June to finance weapons purchases and cover budget shortfalls in Kyiv. An initial €6 billion from the facility has been earmarked to boost drone production for Ukrainian forces as Kyiv seeks to stabilise front lines and carry out strikes inside Russia.