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UK Set to Enter Talks to Join European Union's $105.9 Bln Ukraine Loan


Mon 04 May 2026 | 10:14 AM
Nada Mustafa

Britain ​is set to enter talks to join the European Union's 78 billion ‌pound loan ($106 billion) to Ukraine, the government said on Sunday, in a further sign of deepening European defence ties under rising U.S. pressure, according to Reuters.

Prime Minister Keir Starmer is expected on Monday to tell ​a summit in Armenia's capital Yerevan of the European Political Community - a discussion ​forum set up after Russia's invasion in 2022 - that Britain wants ⁠to work with the EU to support Ukraine in getting vital military equipment, his ​office said.

The loan, approved by the EU last month, is set to cover two-thirds of ​Ukraine's needs for the next two years, with the bulk of that amount earmarked for military spending as Kyiv defends itself against Russia's four-year war.

The extra funding could also unlock opportunities for British businesses ​to meet Ukraine's urgent needs, particularly in the defence sector, the government said ​in a statement.

Britain, which has imposed wide-ranging sanctions on Russia since the war ‌began ⁠in 2022, will also announce another tranche of "stinging sanctions" on Russian companies this week to disrupt military supply chains, it said.

Starmer's visit, the first by a British leader to Armenia since former Prime Minister Margaret Thatcher in 1990, comes as the Trump ​administration pushes Europe to ​take more responsibility ⁠for the continent's defence.

European countries, including Germany, France and Britain, have recently come under further pressure from Washington after refusing to join ​the U.S. and Israel's war on Iran.

"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," Starmer said in the statement.

He ⁠has ​previously called for stronger defence integration within the continent to ​cut NATO's over-reliance on the U.S., hinting at further alignment with the EU's single market and deeper ​economic integration, six years after Brexit.