UK Considers Joining EU Loan Scheme to Support Ukraine
Sir Keir Starmer has stated that the United Kingdom's participation in a £78bn (€90bn) European Union loan scheme designed to aid Ukraine in its conflict with Russia would generate employment opportunities within the UK and positively impact relations with the EU.
The UK government is currently "discussing participating" in the scheme, Prime Minister Starmer said ahead of the European Political Community (EPC) summit held in Armenia on Monday.
He emphasized that the ongoing discussions aim to enhance Ukraine's defensive capabilities while also facilitating access for UK companies to future contracts arising from the scheme.
EU Loan Scheme Details and Approval
Last month, EU leaders approved the loan agreement to provide Ukraine with €90bn over the next two years, following Hungary's decision to lift its veto. Ukrainian Deputy Prime Minister Taras Kachka described the funding as "a matter of life and death." Two-thirds of the funds are earmarked for strengthening Ukraine's defence needs, with the remainder allocated for broader financial assistance.
Starmer's Participation at the EPC Summit
Sir Keir is among 48 heads of state invited to attend the EPC summit in Yerevan, Armenia. Upon arrival on Monday, he addressed the media, stating:
"In relation to the EU loan that we are discussing participating in, that is very good for Ukraine, because it will give Ukraine capability that it desperately needs in year five of this conflict.
It's very good for the UK, because of the capability that leads to jobs in the United Kingdom.
And it's very good for UK-EU relations, which is very important as we go on to the various discussions."
The inaugural EPC meeting was convened in October 2022, several months after Russia launched its full-scale invasion of Ukraine.
Meeting with Ukrainian President Volodymyr Zelensky
On Sunday in Armenia, Sir Keir met with Ukrainian President Volodymyr Zelensky. The Ukrainian leader asked him to convey his "best regards and thanks" to King Charles III for his "strong words" supporting Ukraine during his recent state visit to the United States.
Sir Keir conveyed the UK's readiness to collaborate with allies to provide Ukraine with the necessary support and pressure to continue opposing Russia, aiming for a just and lasting peace that aligns with Ukraine's interests. He stated to Zelensky:
"We are ready to do the necessary work with allies on Monday to give Ukraine the support you need, the pressure you need to continue to put on Russia to make sure that we get a just and lasting peace, but one that is right for Ukraine."
Additional UK Measures and Discussions
Downing Street has indicated that further UK sanctions targeting Russian companies are expected to be announced this week. These measures aim to disrupt military supply chains.
Additionally, Sir Keir will discuss the situation in the Middle East with European partners during the EPC summit. This dialogue is expected to include strategies for contributing to security in the Strait of Hormuz, a vital oil shipping channel. Iran has significantly restricted traffic through this channel in response to a bombing campaign by the US and Israel that commenced in February.
UK-EU Relations and Brexit Context
Sir Keir has consistently expressed a desire to reset relations with Europe, advocating for closer cooperation on security and economic matters. However, he clarified that this approach does not represent a reversal of Brexit.
Last month, the Conservative Party and Reform UK explicitly opposed a government proposal for legislation that would permit the UK to adopt new EU laws without requiring a full parliamentary vote each time.
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