Today I am informing the house that the UK has signed a contractual agreement with the European Union for the UK to participate in the EU's €90 billion Ukraine Support Loan initiative.

This will help to ensure Ukraine continues to receive the military capabilities it needs to defend itself, deter future aggression, and secure a just and lasting peace. It will enable Ukraine to procure a broad range of capabilities from UK industry, including artillery ammunition, air defence systems and long-range precision strike missiles. This complements the UK's existing military support and demonstrates our unwavering commitment to Ukraine's defence.

The contract will also create valuable opportunities for the UK’s defence industry. By providing UK companies with the opportunity to agree contracts funded through the scheme, including as a UK Prime Contractor and in EU Based Primes’ supply chains, it will help sustain highly skilled jobs, investment and industrial capacity across the United Kingdom, while delivering world-class capabilities to Ukraine where they are needed most. The UK will make a fair contribution to the cost to the EU of providing the loan, proportionate to the value of the contracts awarded to the UK’s industry, thereby helping to share the burden of Europe’s collective security. If no contracts are awarded to UK companies, the UK will not be required to make a financial contribution to the loan.

Just as importantly, this is a step forwards in the UK’s defence industrial relationship with the EU. It is a demonstration of the UK and the EU working together pragmatically and effectively on our shared security challenges. At a time of increasing threats, defence industrial cooperation is not a zero-sum exercise: by combining our expertise, technology and industrial capacity, we can deliver greater security for Europe and greater support for Ukraine. The contract reflects the closely interconnected and interdependent nature of the UK and EU defence industrial bases, which already work together to develop, manufacture and support many of the capabilities that underpin our collective security.

Following the signature of the contract, the Council of the EU will now be asked to approve the necessary implementing measures to ensure that Ukraine can begin accessing UK capabilities as soon as possible.

European security is strongest when allies stand together. This contract is good for Ukraine, good for British industry, and good for the security of our continent. It is a clear demonstration of our shared commitment to Ukraine and our determination to strengthen European security together.

We look forward to building on this cooperation.

https://www.theyworkforyou.com/wms/?id=2026-07-13.hcws226.0