UK joining Ukraine loan scheme would be good for EU ties, Starmer says

Sir Keir Starmer has said joining a £78bn (€90bn) European Union loan scheme to support Ukraine against Russia will be "very good" for relations with the bloc and create jobs in the UK.

The prime minister discussed the plan with European Commission President Ursula von der Leyen at the European Political Community (EPC) summit in Armenia on Monday.

In a joint statement, the pair said the UK's plan to join would be a "major step forward in the UK-EU defence industrial relationship" if it were to go ahead.

Ahead of the gathering, Sir Keir said talks would be aimed at strengthening Ukraine's defences while also trying to give UK firms access to future contracts.

EU leaders last month approved the deal to lend Ukraine €90bn over the next two years after Hungary lifted its veto, with the funding described as "a matter of life and death" by Ukrainian Deputy Prime Minister Taras Kachka.

Two-thirds of it will be spent on bolstering Ukraine's defence needs while the rest will go on broader financial assistance.

Sir Keir is one of 48 heads of state and government invited to attend the EPC summit in Yerevan, Armenia.

"In relation to the EU loan that we are discussing participating in, that is very good for Ukraine, because it will give Ukraine capability that it desperately needs in year five of this conflict," Sir Keir said as he arrived on Monday.

"It's very good for the UK, because of the capability that leads to jobs in the United Kingdom.

"And it's very good for UK-EU relations, which is very important as we go on to the various discussions."

Speaking at the summit, Sir Keir said that "some of the alliances that we have come to rely on" were "not in the place we would want them to be".

"There is more tension in the alliances than there should be and it's very important that we therefore face up to this as a group of countries together," he said.

On issues of defence, trade and energy, "we need a much stronger Europe", he added.

After a meeting in Yerevan, Von der Leyen and Sir Keir said in a joint statement that they had also agreed to start talks on UK participation in an EU innovation fund.

The first EPC meeting was convened in October 2022 - months after Russia launched its full-scale invasion of Ukraine.

Sir Keir met Volodymyr Zelensky on Sunday in Armenia, with the Ukrainian president asking him to pass on his "best regards and thanks" to King Charles III for his "strong words" in support of Ukraine during his recent state visit to the US.

The UK is "ready to do the necessary work" with allies on Monday to give Ukraine the "support you need, the pressure you need to continue to put on Russia to make sure that we get a just and lasting peace, but one that is right for Ukraine", Sir Keir told Zelensky.

Further UK sanctions on Russian companies are expected to be announced this week, in a bid to disrupt military supply chains, Downing Street has said.

No 10 also said Sir Keir will discuss the situation in the Middle East with European partners at the EPC.

This is expected to include how they can contribute to security in the Strait of Hormuz.

Iran has severely limited traffic through the vital oil shipping channel in response to the bombing campaign by the US and Israel, which began in February.

Sir Keir has repeatedly outlined a desire to reset relations with Europe, including closer ties on security and the economy, but said it does not amount to a reversal of Brexit.

The Conservatives and Reform UK last month made clear their opposition to a government plan for legislation to allow the UK to adopt new EU laws without Parliament having to hold a full vote each time.

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