EU approves Britainʼs participation in €90 billion loan. Ukraine will be able to purchase its defense products

The European Union has approved the UKʼs participation in a €90 billion loan to support Ukraine, which is planned for 2026 and 2027.

This was reported on the website of the European Council.

Ukraine will be able to purchase defense products not only from manufacturers in EU countries, but also from British defense companies. The structure of the loan remains unchanged: €60 billion is earmarked for defense-industrial needs, and another €30 billion for budget support.

The decision was made after the UK signed an agreement with the EU on July 13. Britainʼs participation in this program became possible because the country meets three main requirements: it helps cover the costs of the loan; it has entered into a security and defense partnership with the EU and is already providing financial and military support to Ukraine.

On July 15, the FT reported that the EU had given Ukraine an exception to use around €6 billion in defence credit to buy Chinese components for drones. The parts were not available in sufficient quantities in Europe, so Ukraine had asked Brussels to allow it to buy them elsewhere.

• The EU defense loan is part of a broader €90 billion loan that EU leaders have approved for 2026-2027. The money allocated for 2026 will be distributed as follows: €28.3 billion for defense, €16.7 billion for budget support. The loan will be repaid with proceeds from frozen Russian assets in European banks.

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