The €90bn (£78bn) programme, approved by EU leaders last month for the next two years, would direct about two-thirds of funding to Ukraine's defence and the rest to wider financial support.
Downing Street said new UK sanctions on Russian companies are expected this week, while Starmer casts the move as support for Ukraine and part of a broader reset with Europe.
Is this Ukraine aid deal the first step toward a formal UK-EU security and defence pact?
As Britain joins the EU's defence loan, what becomes of its 'special relationship' with the United States?
Can the UK secure European defence contracts without sacrificing its core Brexit principles on sovereignty?
UK’s £390 Million Bid for EU’s €90 Billion Ukraine Facility Marks Strategic Post-Brexit Realignment
Overview
In May 2026, the UK began negotiations to join the EU's €90 billion Ukraine Facility, following the EU's approval after Hungary lifted its veto. Prime Minister Starmer emphasized that British and European security are deeply connected, driving the UK's push to support Ukraine's defense and secure economic benefits for its defense industry. The UK aims to contribute £390 million annually and gain equal access for its companies to the Facility's €60 billion military aid contracts. This move builds on the 2025 UK-EU Security and Defence Partnership and marks a pragmatic step toward closer UK-EU cooperation, despite criticism from Brexit opponents, strengthening collective security against Russian aggression.