UK to Join EU's £78 Billion Ukraine Loan Scheme, Prime Minister Starmer Confirms in Armenia
The United Kingdom is set to commence negotiations to join the European Union's £78 billion (€90 billion) loan scheme, a critical financial mechanism intended for Ukraine.
Prime Minister Sir Keir Starmer conveyed the UK's intentions at the European Political Community (EPC) summit in Yerevan, Armenia. This move signifies a broader desire within the government for closer engagement with the EU, framed publicly as a means to bolster Ukraine's defensive capabilities while simultaneously creating opportunities for UK businesses to secure future contracts.
Ahead of the summit, Sir Keir met with Ukrainian President Volodymyr Zelensky in Yerevan. President Zelensky reportedly conveyed his appreciation to King Charles III for his unequivocal statements of support for Ukraine during his recent US state visit.
Sir Keir affirmed the UK's readiness to collaborate with allies, stating, "we need to go further and faster on defence to keep people safe." He emphasised that the negotiations with the EU aim to ensure Ukraine receives necessary equipment and to facilitate British industry's involvement.
Downing Street also indicated that further sanctions against Russian companies are anticipated this week, designed to disrupt Moscow's military supply chains. The EU leaders recently finalised the €90 billion loan agreement over two years, with two-thirds earmarked for defence and the remainder for broader financial aid. Ukrainian Deputy Prime Minister Taras Kachka previously characterised this funding as "a matter of life and death."
Middle East and Strait of Hormuz
Beyond Ukraine, Sir Keir is expected to engage European partners on the situation in the Middle East, including potential contributions to security in the Strait of Hormuz. Iran has curtailed traffic through this crucial oil shipping channel following US and Israeli bombing campaigns initiated in February. The UK's repeated expressions of a desire to reset European relations, encompassing security and economic ties, are presented as distinct from any reversal of Brexit policies.
