European Union member states have agreed that Ukraine can use a new €90-billion ($118 billion) loan facility to purchase a larger share of weapons from close allies such as the United Kingdom, provided those countries contribute financially to the scheme. The agreement sets the conditions for the massive loan package, aimed at easing Ukraine’s mounting budget pressures as the war with Russia enters its fourth year.
Under the framework, Ukraine will be permitted to spend up to €60 billion ($70 billion) of the loan on weapons procurement to sustain its defense against Russia’s invasion. EU governments had spent weeks debating how much of the funding could be used to buy arms from outside the bloc or from Ukraine’s domestic defense industry, with divisions emerging between countries favoring strict EU-only sourcing and those pushing for broader access to allied suppliers.
A compromise was ultimately reached allowing companies from key non-EU allies — including the UK — to access a greater share of the funds, provided their governments agree to cover a “fair and proportionate” share of the loan’s borrowing costs. EU diplomats said the European Commission is now expected to open formal talks with London on participation in the scheme, though final approval is still required from EU lawmakers.
The conditions mirror those that previously hindered UK involvement in a separate €150-billion SAFE rearmament program after disputes over entry fees. The renewed push for cooperation comes amid growing pressure to strengthen European defense ties as uncertainty clouds transatlantic relations. The agreed rules would also allow Ukraine to buy weapons from outside the EU — including US-made systems such as Patriot air defense missiles — if European suppliers cannot deliver critical equipment quickly enough.
