The United Kingdom hopes that its military equipment suppliers will benefit from Ukrainian orders financed by the €90 billion loan granted by the European Union to Kiev. On Monday, May 4, negotiations with Brussels on this matter were announced.
The EU loan, definitively approved in April after the lifting of a Hungarian veto, was described by UK Prime Minister Keir Starmer as a positive development for Ukraine amidst ongoing conflict. He also emphasized the benefits for the UK, including job creation and improved UK-EU relations.
In response to inquiries, a European Commission spokesperson welcomed the UK’s strong political signal but noted that the precise details of cooperation with London, especially financial aspects, are yet to be specified.
The EU plans to grant Ukraine a €90 billion loan, with €60 billion earmarked for arms supply. While there is a preference for the European defense industry, exceptions are made for countries that have defense and security partnerships with the EU and are significant military aid contributors to Ukraine.
The UK, as one of these exception countries, will need to pay an entry fee to the EU to benefit from industrial returns, covering a portion of the interests owed by the 24 out of 27 EU countries financing the loan. These interests are expected to amount to several billion euros annually.
