The United Kingdom enters the EU loan of 90 billion euros for Ukraine and opens access for Kyiv to the British defense industry.

The European Union and the United Kingdom have concluded the agreement that allows British companies to supply military equipment purchased by Ukraine through the European loan of 90 billion euros. London will contribute to the financing costs proportionally to the value of the contracts won by British firms. Ukraine has already received 7.1 billion euros in June, of which 3.2 billion for the budget and nearly 3.9 billion for defense.

Ukraine will be able to purchase military equipment from British manufacturers using the 90 billion euro loan prepared by the European Union for budgetary and defense expenditures. The EU and the United Kingdom have signed the agreement that establishes London's participation in the mechanism and its contribution to the loan costs.

In short

The agreement allows the inclusion of British companies in the group of manufacturers from which Ukraine can purchase military equipment through the European loan of 90 billion euros.

The United Kingdom will cover part of the costs incurred for contracting the loan. The contribution will be calculated proportionally to the value of the contracts awarded to British firms.

The loan is intended for both financing the Ukrainian budget and for defense purchases over the next two years.

Ukraine received a first payment of 7.1 billion euros in June: 3.2 billion for the budget and nearly 3.9 billion for defense. A new payment for defense is expected this week.

The agreement does not mean that British firms automatically receive contracts. Ukraine will be able to purchase from a larger number of sources, and London will contribute based on the orders awarded to the British industry.

The agreement signed by the European Union and the United Kingdom concludes negotiations regarding British participation in the Ukraine Support Loan, a 90 billion euro loan intended to provide Ukraine with predictable funding over the next two years.

The mechanism has two components. Part of the money supports the Ukrainian state budget, which must continue to fund public services and the functioning of the administration during wartime. The other part is intended for defense expenditures.

Through the participation of the United Kingdom, Ukraine will be able to utilize the defense component and make purchases from British manufacturers. Until now, access to the loan was linked to the conditions set by the European Union for the sources from which equipment could be purchased.

The statement does not indicate what types of weapons, ammunition, or other products can be ordered from the United Kingdom. It does not establish any value reserved for the British industry and does not identify the firms that could receive contracts.

The United Kingdom will contribute to the costs generated by the loan, including financing expenses. The contribution will be "fair and proportional" to the value of the contracts awarded to British companies, according to the joint statement.

The formula allows for the expansion of the industrial base from which Ukraine can procure without EU member states having to bear the costs associated with the participation of a country outside the Union. The value of the British contribution is not established in the document, as it will depend on the contracts actually awarded.

The participation of the United Kingdom does not transfer the entire loan to joint administration and does not make London a participant in all components of the program. The agreement concerns access for the British industry to purchases made through the mechanism and the corresponding contribution to financing costs.

The first payment made through the loan was 7.1 billion euros. From this amount, 3.2 billion were allocated for budget support, and nearly 3.9 billion for defense expenditures. The EU and the United Kingdom announced that a new payment for defense is expected this week, without specifying the amount.

Budget support can be used to maintain the functioning of the Ukrainian state, while the defense component allows for financing the necessary purchases for the army. The joint statement does not provide a complete breakdown of the 90 billion between the two components.

The agreement also creates a new channel of cooperation between the defense industries of the European Union and the United Kingdom following the British exit from the EU. The document describes the defense industrial bases of both parties as closely connected and interdependent.

For Ukraine, expanding the group of suppliers can provide access to British production capabilities and a wider range of equipment. The concrete effect will depend on the needs expressed by Ukrainian authorities, the procurement procedures, and the manufacturers' ability to deliver.

The European Union and the United Kingdom have presented the agreement as part of their commitment to support Ukraine in the face of Russian aggression. The document does not set a date for the conclusion of military and financial support, but the current loan provides funding for the next two years.

The agreement signed on July 13 marks the end of negotiations between the EU and the United Kingdom. The joint statement does not specify when British companies will be able to start participating effectively in contracts financed through the loan or whether additional administrative measures are needed before the first purchases.

https://2eu.brussels/ro/news/regatul-unit-intra-in-imprumutul-ue-de-90-de-miliarde-de-euro-pentru-ucraina-si-deschide-accesul-kievului-la-industria-britanica-de-aparare