The UK is preparing to open negotiations to join the European Union’s €90 billion (£78 billion) loan programme for Ukraine, in a move aimed at strengthening support for Kyiv while rebuilding defence cooperation with European partners.

Prime Minister Keir Starmer is expected to outline the proposal during a European summit in Yerevan, Armenia, where he will urge closer collaboration to ensure Ukraine continues receiving the military resources it needs to resist Russia’s invasion. The initiative follows the EU’s recent approval of the loan scheme, made possible after political deadlock eased in Hungary.

Participation in the programme would mark a significant step in the UK’s broader effort to reset relations with Brussels. It could also open the door for British defence companies to bid for contracts funded through the scheme, offering potential economic as well as strategic benefits.

Alongside these plans, the UK government is set to introduce a new round of sanctions targeting Russian businesses later this week, with the aim of disrupting supply chains linked to Moscow’s military operations, according to Downing Street.

Ahead of the summit, Keir Starmer emphasised the need for deeper cooperation between the UK and EU on security matters, stating: “When the UK and the European Union work together, we all reap the benefits – and in these volatile times we need to go further and faster on defence to keep people safe.

“That is why we are beginning negotiations with the EU to ensure Ukraine gets the equipment it needs to defend its freedom, while driving opportunities for British industry to play its full part. I will always act in our national interest: protecting our security, supporting our allies, and delivering jobs and stability at home.”

The visit to Armenia marks only the second time in more than 25 years that a British leader has travelled to the country, underlining the significance of the gathering. It also reflects the Prime Minister’s ongoing push to deepen defence ties with European allies, even after earlier discussions about joining the EU’s €150 billion Security Action for Europe fund collapsed last year due to disagreements over the terms of participation.

With the war in Ukraine continuing to shape the European security landscape, the UK’s renewed engagement with EU defence initiatives signals a shift toward an ever closer shared alliance.