Britain In Talks To Participate In EU Loan To Ukraine
British Prime Minister Keir Starmer said Monday his government was in talks to take part in a giant EU loan for Ukraine so that some of the money could be spent on British weapons.
The European Union last month approved a 90-billion-euro ($118 billion) loan Ukraine desperately needs to plug a budget shortfall after Hungary lifted its veto.
“We are discussing participating,” Starmer said of the loan, addressing reporters as he arrived at a summit of European leaders in Armenia.
Under the loan scheme, Ukraine will only pay back the money once Moscow pays for the damage President Vladimir Putin’s invasion has wrought — with Brussels to cover interest costs through the EU budget.
EU countries agreed in February that Ukraine could use the loan to buy a greater share of weapons from close allies like Britain, if those countries contributed financially, covering some of the borrowing costs.
That came after weeks of haggling, with France that had pushed for tough limitations on purchases from outside the EU, while others argued for a more lenient stance towards partners such as Britain, Canada, and Norway.
The loan scheme allows Ukraine to spend 60 billion euros on weapons to fight Russia’s invasion.
Starmer said British participation would give Ukraine the “capability that it desperately needs” as Russia’s war grinds into a fifth year and would boost UK jobs.