UK to enter talks to join £78bn EU loan scheme for Ukraine

The UK is set to enter negotiations to join a £78 billion (€90 billion) European Union loan scheme designed to provide critical financial support to Ukraine. This move was announced by Sir Keir Starmer during the European Political Community (EPC) summit in Armenia, signaling the UK government’s intent to strengthen ties with the EU while supporting Ukraine’s defense efforts. The loan package, approved by EU leaders after Hungary lifted its veto, aims to bolster Ukraine’s military capabilities and provide broader financial assistance over the next two years. Sir Keir met with Ukrainian President Volodymyr Zelensky in Yerevan ahead of the summit, where Zelensky conveyed his gratitude to King Charles III for his recent vocal support of Ukraine. The UK’s participation in the loan scheme is intended not only to enhance Ukraine’s ability to resist Russian aggression but also to secure opportunities for British companies to access future contracts linked to the aid. Downing Street emphasized that the UK is prepared to collaborate closely with European allies to maintain pressure on Russia and work toward a just and lasting peace favorable to Ukraine. The EPC summit, which gathers 48 heads of state and government, also provided a platform for discussions on broader security issues, including the situation in the Middle East. Sir Keir is expected to engage European partners on how to address security challenges in the Strait of Hormuz, where Iran has restricted oil traffic in response to ongoing bombing campaigns. While the UK pursues closer cooperation with the EU on defense and economic matters, Sir Keir reiterated that this approach does not represent a reversal of Brexit, despite opposition from some political factions within the UK. The move reflects a pragmatic effort to align with European partners amid ongoing geopolitical volatility.