UK to join EU's £78bn Ukraine loan scheme

The United Kingdom will begin negotiations to join a £78 billion (€90bn) European Union loan scheme designed to support Ukraine, Prime Minister Keir Starmer is set to announce at the European Political Community summit in Yerevan, Armenia, on Monday. The move represents a significant step in Britain's efforts to deepen defence cooperation with European allies amid ongoing pressure from the Trump administration for Europe to take greater responsibility for its own security. Starmer met Ukrainian President Volodymyr Zelensky on Sunday in the Armenian capital, where the Ukrainian leader asked the prime minister to convey his gratitude to King Charles III for his supportive remarks during the monarch's recent state visit to the United States. Of the EU loan, approximately two-thirds will fund Ukraine's defence needs over the next two years while the remainder will support broader financial assistance, with Starmer stating the UK is "ready to do the necessary work" alongside allies to ensure Ukraine receives the equipment required to defend itself against Russia's invasion. Downing Street also confirmed that further UK sanctions targeting Russian companies to disrupt military supply chains will be announced this week. The announcement follows EU leaders approving the loan scheme last month after Hungary lifted its veto, with Ukrainian Deputy Prime Minister Taras Kachka describing the funding as "a matter of life and death." This participation marks another development in Starmer's stated desire to reset Britain's relationship with Europe across security and economic matters, though his government has emphasised this does not constitute a reversal of Brexit. The EPC summit, which gathered 48 heads of state and government, first convened in October 2022 following Russia's full-scale invasion of Ukraine. Starmer's visit marked the first by a British prime minister to Armenia since Margaret Thatcher's trip in 1990.