UK to join €90 billion EU loan to support Ukraine

The United Kingdom will participate in a €90 billion loan support mechanism for Ukraine, designed for 2026-2027. The funds will be used to finance the state’s budgetary and defense needs.

This is stated in a joint statement of the European Union and the United Kingdom, published by the European Commission.

The parties announced the signing of a contractual agreement that completes negotiations on London’s participation in the loan support mechanism for Ukraine.

Ukraine will be able to purchase more defense products

The participation of the United Kingdom will allow Ukraine to use loan funds to purchase products from a wider range of defense manufacturers, including British companies.

The United Kingdom will make a proportional financial contribution to cover the costs associated with borrowing. Its amount will depend on the value of the contracts that Ukraine will conclude with British manufacturers.

There is no fixed fee for London’s participation in the program. The British government’s financial contributions will be made depending on Ukraine’s purchases of military equipment and defense products from UK companies.

The loan is designed for two years

The EU and the UK stressed that the loan should provide Ukraine with predictable financial support over the next two years.

The funds are planned to be used both for budgetary needs and for financing defense spending.

In June, Ukraine was already allocated 7.1 billion euros. Of this amount, 3.2 billion euros were allocated for budgetary spending, and almost 3.9 billion euros for defense needs.

Further allocation of funding for Ukraine’s defense needs is also expected.

The EU and the UK declared joint support for Ukraine

In a joint statement, the European Union and the UK called the signing of the agreement a demonstration of joint commitment to support Ukraine.

The parties stressed that they will continue to work with international partners to strengthen Ukraine’s resilience, support its economy, and meet its immediate and long-term needs.

The EU and the UK also noted that financial and defense support for Ukraine is an investment in the security of all of Europe.

“A strong, sovereign, and secure Ukraine is essential for the security and stability of Europe as a whole, as well as for deterring future aggression,” the joint statement said.