UK to Join €90 Bln EU Loan Program to Support Ukraine

The United Kingdom is poised to join a €90 billion European Union loan program aimed at supporting Ukraine, in a move that could strengthen defense and security cooperation between London and Brussels.

According to a report by The Times, the European Union has opened the door for UK participation in the initiative, which is expected to help Kyiv purchase up to €60 billion worth of weapons over the next year.

However, current EU rules limit the involvement of British companies, allowing them to bid only for contracts where equipment cannot be sourced from manufacturers within the bloc. UK officials are now seeking broader access to ensure British firms can compete on equal terms with European counterparts.

British defense companies have already supplied Ukraine with tanks, drones, missiles, and artillery ammunition as part of ongoing military support.

EU Trade Commissioner Maroš Šefčovič indicated that Brussels is open to expanding UK participation, emphasizing the importance of closer cooperation with key partners in an increasingly unstable global environment.

The program was approved by EU leaders last year but faced delays after Hungary blocked the necessary legal framework under unanimity rules. Recent political changes in Budapest, following the electoral defeat of Viktor Orbán, could pave the way for approval under a new pro-EU government.

UK participation is expected to require a financial contribution worth hundreds of millions of pounds, with estimates suggesting a share of around £390 million, equivalent to roughly 15 percent of the annual €3 billion cost of servicing the loan.

London previously withdrew from a separate €140 billion EU rearmament program, known as the Security Action for Europe initiative, after being asked to pay an entry fee of nearly €2 billion.

The renewed push to join the Ukraine support fund is seen as a key step toward rebuilding UK-EU relations after Brexit, with negotiations still ongoing.

European officials have signaled no objection to British defense firms taking part in procurement linked to the fund, provided the UK contributes its fair share to the program’s financing.