The European Union has cleared the way for Ukraine to use a new €90-billion ($118 billion) loan to fund additional weapons purchases from allied countries, including the United Kingdom, subject to financial contributions from those partners. The decision marks a significant step toward unlocking urgently needed funding for Kyiv as it grapples with a severe fiscal shortfall while continuing to resist Russia’s invasion.
As part of the agreement, Ukraine will be able to allocate up to €60 billion ($70 billion) of the loan toward arms procurement. EU member states had been divided over whether the funds should be restricted to EU-based manufacturers or opened to trusted external partners. France had pushed for tight limits on non-EU purchases, while several other countries advocated flexibility to include allies such as the UK, Canada, and Norway.
EU ambassadors ultimately endorsed a compromise allowing companies from closely aligned partner nations to access a larger share of the loan, provided their governments agree to shoulder a proportional share of the borrowing costs. Officials said the European Commission is now preparing to engage the UK in negotiations on participation, although the plan still requires approval by the European Parliament.
The move comes as pressure grows on both Brussels and London to reinforce defense cooperation amid uncertainty in US foreign policy. Under the agreed framework, Ukraine will also be permitted to procure weapons from outside the EU when European suppliers are unable to meet urgent operational needs. This provision would allow Kyiv to use the funds to purchase critical systems from the United States, including Patriot air defense missiles, as it seeks to counter intensified Russian attacks.
