UK eyes joining EU’s €90 billion loan to Ukraine
Why It Matters
Britain is in talks to join the European Union’s €90 billion loan to Ukraine. To qualify for defence orders financed by the loan, the UK must cover some interest payments and meet specific criteria. This is seen as a sign of deepening European defence ties under rising US pressure.
Britain is in talks to join the European Union’s €90 billion (US$105.13 billion) loan to Ukraine to qualify for Kyiv’s defence orders that the loan finances but will have to cover some interest payments on the borrowing to be eligible, the European Commission said.
“Today marks the first high-level discussion on the UK’s potential participation in the €90 billion Ukraine Support Loan, following technical exchanges between the UK Government and the Commission,” a Commission spokesman told reporters.
The discussions, between European Commission President Ursula von der Leyen and British Prime Minister Keir Starmer at a European Political Community summit in Armenia, are a further sign of deepening European defence ties under rising US pressure.
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.
Some of that cash could be spent on British defence equipment if London meets three criteria, the Commission said.
Britain has to have a Security and Defence Partnership with the EU, which it entered into on May 19, 2025 and has to provide significant financial and military support to Ukraine – a condition it is likely to meet after a Commission assessment.
What to Watch
AI outlook — possibilities, not facts
UK will likely meet the criteria for participation in the loan.
Likely · Within months
Open Questions
- What specific interest payments will the UK have to cover?
- What is the exact amount of financial and military support the UK is expected to provide?
- What are the implications of this partnership for future EU-UK defense cooperation?
- How will this affect the broader geopolitical landscape concerning Russia's war in Ukraine?
