British Prime Minister Keir Starmer has said the United Kingdom is in discussions to participate in a major European Union loan package for Ukraine, which could also support the purchase of British-made weapons.
Speaking on Monday as he arrived for a summit of European leaders in Armenia, Starmer said the talks were aimed at strengthening Ukraine’s military capacity while also boosting UK defence industry jobs.
“We are discussing participating,” he told reporters.
The EU last month approved a €90 billion ($118 billion) loan for Ukraine to help cover its budget shortfall, after Hungary lifted its veto. Under the arrangement, Kyiv would only repay the funds if Russia compensates for the destruction caused by its invasion, with the EU covering interest costs through its budget.
The agreement also allows Ukraine to allocate part of the funds—up to €60 billion—for weapons purchases, including from non-EU allies such as the UK, Canada, and Norway, provided those countries contribute financially.
Starmer said UK involvement would help deliver urgently needed military support for Ukraine as the war with Russia approaches its fifth year.
In a joint statement with European Commission President Ursula von der Leyen, he described the potential arrangement as a “major step forward” in EU-UK defence industrial cooperation.
“We are beginning negotiations to ensure Ukraine gets the equipment it needs to defend its freedom, while also creating opportunities for British industry,” Starmer said.
The move comes amid growing efforts to deepen UK-EU cooperation on defence, particularly as uncertainty grows over US foreign policy under President Donald Trump.
The loan discussions follow an earlier failed attempt by the UK to join a separate €150 billion EU defence programme, which stalled over disagreement on entry costs.
