Britain joins EU’s $132 billion support loan for Ukraine

BRUSSELS - Britain on July 13 signed up to participate in the EU’s €90 billion (S$132 billion) support loan for Ukraine, meaning UK firms will be able to provide more weapons paid for by the funds.

“This agreement will help ensure Ukraine gets the support it needs to defend itself against Russian aggression, while backing British defence companies, supporting skilled jobs and strengthening our national security,” British Prime Minister Keir Starmer said in a statement.

“Working alongside our European allies, we are stepping up support for Ukraine and stepping up pressure on Russia.”

Brussels and London said that Britain will provide “a fair and proportionate contribution to the costs arising from borrowing, commensurate with the value of contracts awarded to UK companies.”

The move is the latest push by the EU and Britain – which quit the bloc in 2020 – to work more closely together.

The EU in June started paying out the mammoth two-year loan to Ukraine that will go towards buying weapons for Ukraine’s forces and plugging budget blackholes.

An initial €6 billion euros from the loan will go towards helping bolster the production of drones for Kyiv’s forces.

The desperately needed funds come as Ukraine appears to be turning the tide in the four-year war by stabilising the front line and striking deep inside Russia. AFP