STORY
European Union member states have approved the United Kingdom’s participation in the EU’s €90 billion support loan for Ukraine. The framework is intended to meet urgent defence and budgetary needs during 2026 and 2027, with British participation allowing Ukraine to use loan financing to buy eligible defence products from manufacturers based in the United Kingdom.
The loan allocates an indicative €60 billion for defence industrial capacity and procurement, with €30 billion available for economic and budgetary support. The Council said €8.1 billion had already been disbursed, including €3.2 billion in budget assistance and nearly €4.9 billion for defence. The Commission expects to release €28.3 billion from the defence package during 2026.
The United Kingdom agreed to make a fair and proportionate contribution to borrowing costs and qualifies through its security and defence partnership with the European Union and its existing support for Ukraine. The approval followed a contribution agreement signed on 13 July. Formal adoption was to take place through a written procedure, with the decision entering into force upon publication in the EU’s Official Journal.