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The European Union is preparing to allow Ukraine to use its €60 billion defense loan program to purchase British-made weapons, expanding Kyiv’s procurement options beyond EU-based manufacturers, Bloomberg reported, citing sources familiar with the matter, UATV English reports.
According to the report, the EU and the United Kingdom have reached the final stages of negotiations on an agreement that would grant British defense companies access to the financing mechanism. The deal is expected to be announced as early as next week during a meeting of the UK- and France-led Coalition of the Willing in Paris.
Under the proposed arrangement, the UK would not be required to make a fixed upfront contribution to participate in the program. Instead, London would contribute proportionally based on the amount of EU loan funding Ukraine spends on contracts with British defense companies, with payments calculated according to the value of each contract and related financing costs.
The agreement is seen as a compromise after negotiations over the UK’s participation in the EU’s €150 billion SAFE defense fund stalled due to disagreements over London’s financial contribution.
Negotiations on the Ukraine loan mechanism, however, progressed much more quickly. According to Bloomberg’s sources, several EU member states, including the Netherlands, pushed for a rapid agreement.
EU officials reportedly believe the arrangement will primarily benefit Ukraine by making it easier to procure British military equipment while further integrating the Ukrainian and British defense industries.
The agreement was initially expected to be announced alongside broader UK-EU defense cooperation at the next UK-EU summit. Those plans were postponed until later this year following the resignation of British Prime Minister Keir Starmer.
Sources said most of the agreement was finalized on the sidelines of this week’s NATO summit in Ankara.
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