UK wants in on EU’s €90 billion for Ukraine

The UK is considering helping the EU to provide a €90 billion ($105 billion) ‘loan’ to Ukraine to gain access to lucrative military contracts funded through the program.

The plan was announced in a joint statement by European Commission chief Ursula von der Leyen, European Council President Antonio Costa, and UK Prime Minister Keir Starmer during the European Political Community summit in Armenia on Monday.

The so-called loan scheme, backed by joint EU borrowing, is structured on the assumption that it would be repaid if Kiev secures reparations from Russia, a prospect Moscow has dismissed as “unrealistic.” By backing Brussels, London will gain access to the slew of military contracts the cash is expected to generate.

The scheme was floated after plans to seize Russia’s frozen sovereign assets failed, and was approved last month after a lengthy standoff with Hungary ended when pro-EU candidate Peter Magyar’s Tisza party won the Hungarian election. The vast majority of the billions is for military spending, mostly on Western weapons.

Britain would need to cover part of the interest on the EU’s borrowing, and in effect would contribute to financing the program in exchange for access to contracts. The commission said the UK’s contribution would be calculated based on the value of contracts awarded.

Starmer hailed the potential deal as “very good for the UK,” citing “capability that leads to jobs.” Both London and Brussels pitched it as “a major step forward in the EU-UK defense industrial relationship.”

The UK can reportedly take part on two conditions – if it maintains a Security and Defense Partnership with the EU, agreed last May, and if it continues significant financial and military support for Ukraine.

London has been one of Kiev’s main backers, pledging £21.8 billion ($29.5 billion) since 2022, over half of which is military budget. UK officials, including Starmer, have repeatedly used claims that Russia poses a threat to Europe – a notion Moscow dismisses as “nonsense” – to justify aid and increased domestic defense spending.

Britain is a key force behind the Ukraine conflict, according to Moscow, accusing it of direct involvement in Ukrainian long-range strikes on Russian cities using UK-supplied weapons. Russian officials argued systems such as British Storm Shadow missiles cannot be used effectively without direct UK participation. Last month, the Russian Defense Ministry also listed European countries hosting drone production facilities for Kiev’s forces, including sites in the UK.

Moscow has long described the conflict as a Western proxy war and condemned continued aid to Kiev, warning it undermines peace efforts. Commenting on the €90 billion scheme, Kremlin spokesman Dmitry Peskov accused the EU of “digging into the pockets of its own taxpayers” to prolong the conflict.