EU countries approve UK participation in $103B Ukraine support loan

EU member states on Wednesday approved the UK’s participation in a €90 billion ($103 billion) loan framework designed to meet Ukraine’s urgent defense and budgetary needs in 2026 and 2027.

The decision will allow Ukraine to use financing under the Ukraine Support Loan to procure critical defense products from UK-based manufacturers, the Council of the EU said in a statement.

British suppliers will join those based in EU member states, European Economic Area-European Free Trade Association countries, and other approved third countries eligible to participate in the framework.

“EU solidarity with Ukraine is a key priority of the Irish (EU term) Presidency,” said Ireland’s Foreign Minister Helen McEntee.

“Today’s approval reflects the EU and the UK’s shared commitment to support Ukraine as long as it takes to bring Russia's illegal war of aggression to an end and secure a comprehensive, just and lasting peace,” she added.

Of the €90 billion package, €60 billion is earmarked for investment in Ukraine’s defense industrial capacity and the procurement of military products. The remaining €30 billion will provide direct economic and budgetary assistance.

The approval follows a contribution agreement signed by the EU and the UK on July 13.

According to the council, Britain met the three requirements for third-country participation by agreeing to make a proportionate financial contribution toward borrowing costs, establishing a security and defense partnership with the EU, and already providing significant financial and military assistance to Ukraine.

The council is expected to formally adopt the decision through a written procedure in the coming days. It will take effect upon publication in the EU’s Official Journal.

Some €8.1 billion has already been disbursed under the loan framework, including €3.2 billion in budgetary assistance and nearly €4.9 billion for defense.

The European Commission is expected to disburse €28.3 billion of the €60 billion defense package during 2026.