EU opens door for UK to join Ukraine arms purchases under loan program
Photo: British Prime Minister Keir Starmer (Getty Images)
The European Union will allow the United Kingdom to join a €90 billion loan program for Ukraine, reports The Times.
The program is expected to help Ukraine purchase weapons worth up to €60 billion over the next year.
However, under current EU rules, British companies can only bid for contracts that EU manufacturers are unable to fulfill.
British ministers want to negotiate broader access so their companies can compete on equal terms.
European Commissioner for Trade and Economic Security Maroš Šefčovič said the EU is open to greater UK participation in the program as part of a broader reset of relations. According to him, this could be beneficial for both sides.
The UK’s contribution is likely to amount to around £390 million (€455 million), but the final sum has not yet been agreed.
A source told The Times that the UK is negotiating to join the Ukraine loan program. EU officials have no objections to British defense companies participating in tenders for procurement financed by the loan.
The loan terms mean that the UK will pay its fair share of interest — about €3 billion per year.
EU loan for Ukraine
The European Commission has postponed the first tranche under the €90 billion loan for Ukraine.
As early as next week, the EU Foreign Affairs Council will consider the loan for Ukraine and the 20th package of anti-Russian sanctions.
The election victory in Hungary of Tisza Party leader Péter Magyar does not mean the automatic unblocking of the €90 billion EU loan for Ukraine.
Magyar said he is ready to discuss the issue with European leaders, but the decision was made back in December. At that time, Hungary, Slovakia, and Czechia were granted the right not to join the program.
Even if Budapest lifts its objections, Bratislava is next — Slovakia and its Prime Minister Robert Fico have not yet changed their position. This is accompanied by routine bureaucratic delays: the formation of a new Hungarian government will take time.
Slovakia has already stated that it will not block the loan for Ukraine.
