EU governments have reached an agreement allowing Ukraine to use a €90-billion ($118 billion) loan to buy a larger portion of its weapons from close partners such as the UK, on condition that those countries share in financing the scheme.
The deal establishes the funding conditions for the massive loan package, paving the way for Kyiv to receive vital financial support as it struggles with a widening budget gap deep into the war with Russia.
Under the arrangement, up to €60 billion ($70 billion) will be earmarked specifically for weapons procurement to sustain Ukraine’s defense effort.
Member states have spent weeks disputing how much of the funding should be restricted to EU-based defense firms versus suppliers outside the bloc or Ukraine’s domestic industry.
France advocated strict limits on non-EU purchases, while other countries argued for broader access for trusted allies such as the UK, Canada, and Norway.
A compromise now allows companies from allied states — including the UK — to access a greater share of the funds, provided their governments agree to shoulder a proportionate share of the loan’s borrowing costs, according to an EU statement.
Diplomats said the European Commission will move to open negotiations with London on formal participation in the scheme.
The proposed framework, still pending approval by the European Parliament, mirrors conditions that previously blocked UK involvement in a separate €150-billion EU rearmament loan after disputes over financial contributions.
Efforts to stabilize EU-UK ties have intensified amid growing uncertainty in transatlantic relations, fueled by shifting US policy under President Donald Trump.
The eligibility dispute comes as Ukraine faces a severe cash crunch, with Kyiv pressing for the freedom to source weapons wherever available to counter Russia’s sustained attacks.
Under the agreed rules, Ukraine may purchase arms from outside the EU when European suppliers cannot deliver fast enough — enabling potential acquisitions from the United States, including critical systems such as Patriot air defense missiles.
