The United Kingdom has announced its intention to commence negotiations to join the European Union's 90 billion euro (£78 billion) loan initiative for Ukraine, as the government seeks to reinforce support for Kyiv and enhance defence collaboration with the bloc.
Prime Minister's Announcement at European Summit
Sir Keir Starmer is set to address leaders at the European Political Community (EPC) summit in Yerevan, Armenia, on Monday, emphasising Britain's desire to work more closely with European partners to ensure Ukraine receives the military equipment necessary to sustain its resistance against Russia's invasion.
The move to participate in the loan scheme, which was recently approved by the EU following the defeat of Hungarian Prime Minister Viktor Orban in national elections that ended a prolonged deadlock, forms part of the Prime Minister's broader strategy to reset relations with Brussels.
Deepening Defence Cooperation
Sir Keir called for the UK and EU to “go further and faster on defence” cooperation ahead of his visit to the EPC summit. This marks only the second visit by a British leader to Armenia and the first in over 25 years. He also noted that access to the initiative could create opportunities for British defence firms to compete for contracts under the scheme.
Additionally, Downing Street confirmed that the UK will impose further sanctions on Russian companies later this week to disrupt military supply chains.
The Prime Minister stated: “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.”
Background and Context
Sir Keir has indicated a desire for closer defence cooperation with the EU, even after previous talks aimed at UK participation in Brussels' 150 billion euro (£130 billion) Security Action for Europe rearmament fund collapsed late last year, as the price for entry was deemed too high.
Before his trip to Armenia, the Labour leader wrote in The Observer that Brexit had “damaged our economy” and that strengthening economic ties with the continent was crucial for recovery.
Number 10 stated that the UK and EU, which will hold another joint summit this summer, will negotiate the parameters of access to the bloc's loan for Ukraine in the coming weeks. The EU approved the financial boost last month after Hungary lifted its veto, providing vital support to keep Ukraine afloat for the next two years.
Meetings at the Summit
Sir Keir is expected to hold bilateral meetings with several European counterparts on the sidelines of the EPC. On Sunday, he met Ukrainian President Volodymyr Zelensky in Yerevan, where Zelensky thanked the King for his “strong words” on Ukraine's defence during his state visit to the United States, as well as for UK sanctions against Russia and efforts to counter the shadow fleet.
The EPC, formed in 2022 following Moscow's full-scale invasion of Ukraine, convenes as US President Donald Trump has shifted his focus from the Ukraine conflict to the Middle East. The fallout from the Iran war will also feature prominently on the agenda, with the Prime Minister urging action to limit economic impacts and de-escalate 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 worldwide.
The Prime Minister's trip comes ahead of local elections this week, where voters will deliver their first verdict on his government.
