The European Union plans to allow Ukraine to purchase British weapons using a €60 billion ($69 billion) loan provided to Kyiv for defense procurement. This was reported by Bloomberg citing sources, writes UNN.
Details
According to sources, after several months of negotiations, the EU has moved closer to concluding an agreement with the UK government that would open access to the funding program for British defense companies. They noted that the deal is likely to be announced next week during a meeting in Paris, which will bring together countries of the Coalition of the Willing, led by the UK and France, that support Ukraine.
It is noted that there is no fixed contribution required from the UK for participation in the program. Instead, the British government will make contributions depending on the volume of loan funds Ukraine allocates to purchasing weapons from British manufacturers. Their amount will be determined by the cost of each contract and the expenses for servicing the loan.
The agreement is seen as a step toward London after the parties failed to agree on the UK's participation in the EU's SAFE defense fund worth €150 billion. The negotiations then reached an impasse due to the European Union's demand for an entry fee from Britain.
Britain plans to join the EU's €90 billion loan program for Ukraine04.05.26, 01:32
At the same time, negotiations on the loan program for Ukraine progressed much faster. According to sources, some member states, particularly the Netherlands, actively pushed for the swift conclusion of the agreement. In Brussels, it is also acknowledged that it will primarily benefit Ukraine, as it will simplify the purchase of British weapons and promote further integration of the defense industries of both countries.
Initially, the agreement was planned to be announced during the next UK-EU summit, along with a possible decision on British access to the EU investment fund for financing technology companies, but the plans were postponed until the end of this year due to the resignation of Prime Minister Keir Starmer.
According to sources, the agreement on access to the loan program for defense procurement was largely finalized on the sidelines of the NATO summit in Ankara this week.