The UK will enter negotiations to join the EU’s GBP78 billion loan for Ukraine

0 0 2 minutes read

(Alliance News) – The UK intends to start negotiations to join the EUR90 billion euros or GBP78 billion loan to Ukraine, as the government seeks to strengthen support for Kyiv and deepen defense ties with the bloc.

Prime Minister Keir Starmer will tell leaders at a European summit in Armenia’s capital Yerevan on Monday that Britain wants to work closely with them to ensure Ukraine gets the weapons it needs to continue fighting Russian aggression.

The bid to participate in the loan program – which was recently approved by the EU after Viktor Orban’s defeat in Hungary’s election ended a long-running dispute – is part of the Prime Minister’s reset with Brussels.

Starmer called on the UK and the EU to “go further and faster in securing” cooperation ahead of his visit to the European Political Community summit in Armenia, only the second time a British leader has visited the Caucasus country and the first in more than 25 years.

He also noted that access to the program would create opportunities for British defense companies to compete for contracts under the program.

The UK will impose further sanctions on Russian companies for disrupting military supply chains later this week, according to Downing Street.

The Prime Minister said: “When the UK and the EU work together, we all benefit – and in these changing times we need to move forward and quickly on defense to keep people safe.

“That is why we are starting negotiations with the EU to ensure that Ukraine gets the tools it needs to protect its independence, while opening up opportunities for British industry to play a full role.

“I will always act in our national interest: protecting our security, supporting our allies, and bringing jobs and stability home.”

Starmer has said he wants more cooperation with the EU on defence, even after talks aimed at allowing the UK to join Brussels’ EUR150 billion Security Action for Europe rearmament fund at the end of last year as the price of entry was deemed too high.

Ahead of his visit to Armenia, the Labor leader wrote in the Observer that Brexit had “damaged our economy” and that strengthening economic links with the continent was key to recovery.

The UK and the EU, which will hold another joint summit this summer, will discuss the terms of access to the bloc’s loans to Ukraine in the coming weeks, Number 10 said.

The EU last month approved a funding increase, which is essential to keep Ukraine afloat for the next two years, after Hungary lifted its veto.

Starmer is expected to hold meetings with other European colleagues on the sidelines of the EPC.

When the Prime Minister met with Volodymyr Zelensky in Yerevan on Sunday, the Ukrainian president thanked the king for his “strong words” in defense of Ukraine during his visit to the US, for UK sanctions against Russia and efforts to combat shadow vessels.

The EPC meeting, which was established in 2022 after Moscow’s full-scale invasion of Ukraine, comes as US President Donald Trump has turned his attention from that conflict to the Middle East.

The fallout from the Iran war will also be high on the agenda, and the Prime Minister will press for action to reduce the economic impact and decline.

He will discuss with his allies how they can best contribute to the long-term security of the Strait of Hormuz, a vital oil and gas transit route whose blockade has crippled economies around the world.

The Prime Minister’s trip comes ahead of this week’s local elections where voters will give their first verdict on his government.

source: PA

Economic Affairs Government and Politics