The UK is in talks with the European Union’s USD 105.13 billion (90 billion euros) support loan to Ukraine to qualify for Kyiv’s defence orders that the loan finances. The European Commission said that the UK may have to cover some interest payments on the borrowing in order to be eligible.
A commission spokesman told reporters on Monday, 4 May, that on that day, it was marking a high-level discussion on the UK’s potential participation in the USD 105.13 billion Ukraine support loan. The meeting was following technical exchanges between the UK government & the commission.
Discussions between the European Commission President Ursula von der Leyen and the British Prime Minister Keir Starmer at a European Political Community summit held in Yerevan, Armenia, indicate the deepening European defence ties under increasing US pressure.
This loan, which was approved by the EU last month, is expected to cover 2/3rds of Ukraine’s requirements for the next 2 years. Kyiv earmarks the bulk of that amount for military spending as it defends itself against the 4-year Russia-Ukraine war.
The EU Commissioner stated that British defence equipment could potentially receive some of the loan capital. This condition applied only if London met three specific criteria.
At the outset, Britain needs a security and defence partnership with the EU. Such a partnership was developed on May 19th, 2025. It is expected to provide significant financial & military support for Ukraine. That’s a condition the UK will likely meet after a Commission assessment.
The final hurdle is that the UK may have to cover some of the interest on the USD 105.13 EU loan. It would be proportionate to the value of contracts awarded to the UK by Ukraine.
The commission spokesman added that following the UK’s confirmation of its interest in participating in the Ukraine Support Loan, the commission may stand ready to move swiftly. That’s with the corresponding necessary follow-up steps.
