The United Kingdom is set to begin negotiations to join the European Union's €90 billion (£78 billion) loan scheme for Ukraine, as Prime Minister Keir Starmer intensifies efforts to deepen defence cooperation with European allies.
Shift in Post-Brexit Relations
Speaking ahead of a summit of the European Political Community (EPC) in Yerevan, Armenia, Starmer is expected to signal Britain's intention to participate in the bloc's major financial package aimed at supporting Kyiv's war effort. The move marks a significant shift in the UK's post-Brexit relationship with Brussels, with Downing Street framing it as both a security priority and an economic opportunity for British defence firms.
Starmer stated that the UK and EU must "go further and faster on defence" cooperation, adding that joint action would help ensure Ukraine continues to receive the military equipment it needs to resist Russia's invasion. The proposed talks come after the EU approved the loan package earlier this year, following the removal of Hungary's veto after a change in government.
Reset with Brussels
The Ukraine loan push forms part of a broader reset in UK-EU relations under Labour, with ministers seeking closer alignment on defence procurement, manufacturing, and funding. Downing Street said participation in the scheme could open the door for UK defence companies to bid for contracts linked to the fund, potentially boosting domestic industry while supporting Ukraine.
Starmer added: "When the UK and the European Union work together, we all reap the benefits… ensuring Ukraine gets the equipment it needs while driving opportunities for British industry." The Prime Minister has increasingly argued that Britain's security is tied to Europe's, telling allies in recent months that "there is no British security without Europe and no European security without Britain."
His government is expected to hold further talks with EU leaders in the coming weeks to determine the terms of UK involvement in the loan scheme.
Sanctions and Domestic Backdrop
Starmer has arrived in Armenia for the EPC summit, where he was welcomed by President Vahagn Khachaturyan alongside other European leaders gathering to discuss security, economic cooperation, and regional stability. The meeting comes amid shifting global dynamics, with the US increasingly focused on tensions in the Middle East, leaving European nations under pressure to take greater responsibility for regional defence.
Ukrainian President Volodymyr Zelensky is also expected to attend the summit, with discussions likely to centre on sustaining military and financial support for Kyiv. The UK is also preparing to announce fresh sanctions on Russian companies later this week, targeting supply chains linked to Moscow's military operations.
Starmer's trip comes just days before local elections in the UK, providing an early test of public support for his government's foreign and economic strategy.
