EU countries have approved the UK’s involvement to help meet Ukraine’s urgent defence needs

On 22 July, EU countries approved the UK’s participation in the loan to support Ukraine, a €90 billion package to help meet Ukraine’s most pressing needs in 2026 and 2027 as it continues to face Russia’s war of aggression.

“The EU’s solidarity with Ukraine is a key priority of the Irish Presidency. Today’s approval reflects the shared commitment of the EU and the UK to support Ukraine for as long as it takes to end Russia’s illegal war of aggression and achieve a comprehensive, just and lasting peace. The UK’s participation in the loan to support Ukraine will also enable Ukraine to procure defence equipment from UK manufacturers, thereby securing the capacity needed to protect its citizens.” – Helen McEntee, Ireland’s Minister for Foreign Affairs and Trade

This measure means that Ukraine will be able to use the loan funding to procure crucial defence equipment manufactured by UK-based companies, as well as by companies from the EU, EEA-ALC states and other approved third countries, as provided for under the current framework.

In total, the loan makes €60,000 million available to Ukraine to invest in defence industrial capabilities, including the procurement of defence equipment. A further €30,000 million is made available to Ukraine as direct economic and budgetary aid.

Ukraine will therefore be able to procure products from a wider range of defence manufacturers, enabling it to secure the capabilities needed to resist Russian aggression. The approval follows the contribution agreement signed by the EU and the UK on 13 July.

The UK’s participation in the loan is possible because it meets the three conditions for third-country participation set out in the Ukraine Support Loan Regulation. The UK has committed to making a fair and proportionate contribution to the borrowing costs, has established a security and defence partnership with the EU, and is already providing substantial financial and military support to Ukraine.

Next steps

In the coming days, the Council will formally adopt the UK’s participation by written procedure. The Decision will enter into force on the day of its publication in the Official Journal of the EU.

Background

The loan to support Ukraine will provide the country with the predictable financial assistance it needs over the next two years, both in the form of budgetary support and to finance defence expenditure. €8.1 billion has already been disbursed under the loan: €3.2 billion in budgetary support and nearly €4.9 billion for defence. It is expected that, by 2026, the Commission will have disbursed a total of €28.3 billion of the €60 billion allocated to the defence package, with the aim of supporting Ukraine’s defence industrial capabilities.

 

More information: European Council