UK Firms Gain Access to EU Defense Fund

British Prime Minister Keir Starmer signed a landmark agreement on Monday allowing the United Kingdom to participate in the European Union's €90bn ($105bn) Ukraine Support Loan, one of his final major foreign policy decisions before leaving office next week. The move is intended to deepen post-Brexit defense cooperation between London and Brussels while expanding military support for Ukraine.

Starmer announced the agreement after arriving in Paris for a meeting of the Coalition of the Willing, a group of countries coordinating long-term security assistance for Ukraine.

Under the deal, British defense companies will be eligible to compete for contracts financed through the EU loan, which will help fund Ukraine's defense and budgetary needs over the next two years. In return, the UK will contribute to the scheme in proportion to the value of contracts awarded to British firms.

"This agreement will help ensure Ukraine gets the support it needs to defend itself against Russian aggression, while backing British defense companies, supporting skilled jobs and strengthening our national security", Starmer said.

Support for Ukraine has been a defining feature of Starmer's foreign policy. Together with French President Emmanuel Macron, he co-founded the Coalition of the Willing to coordinate military assistance and long-term security guarantees for Kyiv. Cooperation with Macron and German Chancellor Friedrich Merz has become one of the hallmarks of his premiership.

Starmer is due to leave office on 20 July and is widely expected to be succeeded by former Greater Manchester Mayor Andy Burnham, who has also pledged to maintain strong British support for Ukraine.

(Reuters, Max)