Starmer, Zelenskyy meet in Yerevan as UK seeks to join EU’s Ukraine loan program

UK Enters Talks to Join EU’s €90 Billion Ukraine Loan Scheme

British Prime Minister Keir Starmer arrived in Yerevan, Armenia, on Sunday ahead of the 8th European Political Community summit, where he is expected to press for the United Kingdom’s participation in the European Union’s €90 billion loan program for Ukraine. The move marks a further step in London’s post-Brexit rapprochement with Brussels, driven by shared concerns over the war in Ukraine and shifting transatlantic dynamics under the Trump administration.

Defense Collaboration at the Fore

The EU formally approved the €90 billion loan — roughly $106 billion — on April 23, after months of delays caused by a Hungarian veto that was lifted following the defeat of Viktor Orbán’s party in Hungary’s April elections and the resumption of Russian oil flows through the Druzhba pipeline. The loan is designed to cover Ukraine’s military and budgetary needs for 2026 and 2027, with roughly two-thirds earmarked for defense spending. Ukraine has said it plans to use the funds to purchase weapons including Swedish Gripen fighter jets and other equipment that EU manufacturers alone cannot supply quickly enough.militarnyi

According to a report by The Times cited by multiple outlets, European Commissioner for Trade and Economic Security Maroš Šefčovič has said the EU is open to broader UK participation in the program as part of a wider reset of relations. Under current EU rules, British companies can only bid for contracts that EU manufacturers are unable to fulfill, but London is negotiating for broader access so its defense firms can compete on equal terms. The UK’s financial contribution is expected to total approximately £390 million, though the final sum remains under discussion.rbc

Deepening Ties Amid Geopolitical Shifts

On Sunday, Starmer met with Ukrainian President Volodymyr Zelenskyy in Yerevan ahead of the summit, which takes place on Monday, May 4. The two leaders discussed stepping up defense industrial collaboration with European partners and maintaining sanctions pressure on Russia, according to a UK government readout. Zelenskyy also held bilateral meetings with the prime ministers of Norway, Finland, and the Czech Republic.gov

The Spectator reported in March that the EU was showing greater “willingness” for the UK to join the loan scheme, with a new mechanism allowing companies from “trusted partner” countries, including Britain, to supply equipment funded by the loans. The push comes after separate talks on UK participation in the EU’s €150 billion defense loans scheme broke down last November over disagreements about an entry fee.spectator

A Broader Reset

The loan discussions are part of a wider recalibration of UK-EU relations. Starmer said in April that Brexit had “inflicted deep damage” on the British economy and pledged to pursue closer economic and security ties with the bloc at an upcoming UK-EU summit. Reuters reported that Starmer has also pushed legislation to align UK rules more closely with EU standards.reuters

The European Political Community summit in Yerevan is expected to bring together leaders from more than 40 countries to discuss strategies on Ukraine, the Iran conflict, and broader European security. The first-ever EU-Armenia summit will follow on May 5.kyivindependent