Sir Keir Starmer has announced the UK's intention to join the European Union's 90 billion euro (£78 billion) loan initiative for Ukraine, describing the move as beneficial for UK-EU relations and domestic job creation. The Prime Minister is set to confirm the bid at the European Political Community summit in Yerevan, Armenia, on Monday.
Speaking ahead of the summit, Starmer said the loan would provide Ukraine with essential capabilities as the conflict enters its fifth year, while also creating jobs in the UK through defence contracts. He emphasised that the initiative would strengthen UK-EU ties, which is crucial for ongoing discussions.
The UK will also impose further sanctions on Russian companies later this week to disrupt military supply chains, according to Downing Street. The loan scheme, recently approved by the EU after Hungary's Viktor Orban lifted his veto following electoral defeat, could open opportunities for British defence firms to compete for contracts.
Starmer co-chaired a Ukraine-focused meeting with French President Emmanuel Macron, attended by Ukrainian President Volodymyr Zelensky, Italian Prime Minister Giorgia Meloni, Polish Premier Donald Tusk, Norwegian Prime Minister Jonas Gahr Store, NATO chief Mark Rutte, and EU leaders. Canadian Prime Minister Mark Carney also participated, marking the first attendance of a non-European leader at the EPC.
The Prime Minister is expected to call for closer defence cooperation with European allies to ensure Kyiv receives necessary military equipment. Brussels has reportedly pushed for the UK to pay around £1 billion annually for detailed single market access, but the Government dismissed the figure, stating it does not recognise the reporting and will not comment on ongoing negotiations.
