The United Kingdom is set to join the European Union’s €60 billion defense loan scheme for Ukraine, marking one of the most significant UK-EU collaborations since Brexit.
The broader package is actually a €90 billion Ukraine Support Loan, approved by the EU Council on April 23, 2026. Roughly €60 billion is earmarked for defense procurement, with the remaining €30 billion covering budgetary support through 2026-2027.
How the deal works
Prime Minister Keir Starmer and European Commission President Ursula von der Leyen kicked off formal negotiations on May 4 during the European Political Community summit in Armenia. Those talks have progressed to the point where, as of July 10, terms are reportedly being finalized for Ukraine to use the €60 billion defense tranche to purchase British-made military equipment.
Britain’s contribution is estimated at around £400 million in interest costs, drawn from its previously pledged £3 billion annual aid commitment for Ukraine’s military support. The UK isn’t writing a new check — it’s redirecting money it already promised to spend.
