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EU Moves to Include UK in €90 Billion Loan Program to Support Ukraine’s Defense Needs
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
The European Union has signaled its openness to allowing the United Kingdom to participate in a €90 billion (around $97 billion) loan scheme aimed at supporting Ukraine’s defende and security needs, The Times reported on April 16.
The loan program is designed to assist Kyiv in acquiring up to €60 billion (approximately $65) worth of weaponry over the next year.
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According to Maros Sefcovic, the European Commissioner responsible for Brexit, the inclusion of Britain in the scheme reflects a broader reset in EU-UK relations. Sefcovic stated that security and defense were high priorities on the EU’s agenda.
“In an increasingly volatile world, security and defense are high on the EU agenda and require that we work in step with our closest partners, including the UK. We are finalising work on a €90 billion support loan for Ukraine with the possibility of UK participation,” he noted.
The expected British contribution to the loan is estimated at £390 million (about $495 million), which represents approximately 15 percent of the €3 billion (nearly $3.2 billion) annual cost to the EU of servicing the debt. While the final amount has not been agreed, discussions are underway, with British participation expected to benefit both UK defense companies and Ukraine’s efforts to bolster its military capabilities.
The outlet noted that Britain is negotiating to join the Ukraine loan program, with EU representatives not opposing the involvement of British defense firms in tenders funded by the loan.
The terms of the loan, agreed upon by member states, stipulate that the government will contribute its “fair share” towards the annual interest, estimated at €3 billion (around $3.2 billion).
Meanwhile, the European Union has made significant progress in preparing a €90 billion loan package for Ukraine, with the first payment expected in the second quarter of 2026.
At a briefing in Brussels, Commission spokesperson Balázs Ujvári confirmed that the Ukraine Support Loan mechanism has been set up, along with updates to the broader Ukraine Facility program, which will cover the period from 2024 to 2027.
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Ujvári added that technical work is ongoing to finalize the necessary framework for the release of funds, including several key documents required to start the disbursement process.
“We will need to finalize the memorandum of understanding, which will serve as the foundation for the macro-financial assistance channel. Additionally, we must update the plan for Ukraine, which supports the Ukraine Facility and provides crucial budgetary support, and since the package is based on a loan, we must also develop the loan agreement,” Ujvári said.
Progress on the loan package follows Hungary’s incoming leadership signaling that it will not hinder the initiative. Newly elected Prime minister Péter Magyar stated that Budapest would not block the EU’s €90 billion support mechanism for Ukraine, although Hungary would remain outside of the program.
-c439b7bd9030ecf9d5a4287dc361ba31.jpg "Photo of Katherina Popilnichenko")
