UK to enter talks on joining European Union’s £78bn loan for Ukraine
Britain will begin talks to join the European Union’s 90bn euro (£78bn) loan to Ukraine as the government seeks to increase support for Kiev and deepen defense ties with the bloc.
Sir Keir Starmer will tell leaders at a European meeting in the Armenian capital Yerevan on Monday that Britain wants to work more closely with them to ensure Ukraine receives the military equipment it needs to continue its fight against Russia’s invasion.
The offer to join the recently EU-approved loan scheme after Viktor Orban’s defeat in the Hungarian election ended a long-running stalemate is part of the Prime Minister’s reset with Brussels.
Ahead of his visit to the European Political Community (EPC) summit in Armenia, Sir Keir called on the UK and EU to “go even further and faster in defending” cooperation; This was the second visit by a British leader to the Caucasus country and the first in more than 25 years.
He also said access to the initiative could create opportunities for British defense firms to compete for contracts under the programme.
The UK will impose further sanctions on Russian companies to disrupt military supply chains towards the end of this week, according to Downing Street.
The Prime Minister said: “We all see the benefits when the UK and the European Union work together and we need to go further and faster on defense to keep people safe in these volatile times.
“That’s why we’re entering into negotiations with the EU to ensure Ukraine receives the equipment it needs to defend its freedom, while encouraging opportunities for British industry to play its part.
“I will always act in our national interest: protecting our security, supporting our allies, and providing jobs and stability at home.”
Sir Keir has indicated he wants to work more closely with the EU on defence, even after talks aimed at Britain potentially joining Brussels’ 150bn euro (£130bn) Security Action for Europe rearmament fund broke down at the end of last year because the price of entry was seen as too high.
Ahead of his trip to Armenia, the Labor leader wrote in The Observer that Brexit was “damaging our economy” and that strengthening economic ties with the continent was key to recovery.
Britain and the EU, which will hold another joint summit this summer, will negotiate the parameters of access to the bloc’s loan to Ukraine in the coming weeks, No 10 said.
The EU last month approved vital financial support for Ukraine’s survival over the next two years after Hungary lifted its veto.
Sir Keir is expected to hold meetings with some of his European counterparts on the EPC margins.
When the Prime Minister met Volodymyr Zelensky in Yerevan on Sunday, the Ukrainian president thanked the King for his “strong words” during his state visit to the United States about Ukraine’s defense, Britain’s sanctions against Russia and efforts to counter the stay-behind fleet.
The EPC meeting, created in 2022 after Moscow’s full-scale invasion of Ukraine, took place as US President Donald Trump shifted his attention from this conflict to the conflict in the Middle East.
The effects of the Iran war will also be high on the agenda and the Prime Minister will press for action to limit economic impacts and reduce tensions.
He will discuss with allies how best to contribute to long-term security in the Strait of Hormuz, a key oil and gas shipping route whose blockade has strained economies around the world.
The Prime Minister’s trip comes ahead of this week’s local elections, where voters will make their first decision about his Government.
