The United Kingdom is discussing with the EU the purchase of weapons for Ukraine—such as Storm Shadow cruise missiles, LMM anti-aircraft missiles, or Nightfall ballistic missiles—using funds from a €90 billion loan package. At present, this is only possible if no European or Ukrainian alternatives are available.
According to Bloomberg, the process is set to move to formal negotiations if Hungary stops blocking the loan. The UK will also have to make a financial contribution to join the programme.
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It is noted that the discussions began after the UK’s attempt to join the €150 billion SAFE defence loan programme fell through. The reason was a disagreement between the parties over the amount required for accession.
From Defense Express we would like to note that the clause regarding the size of the contribution is important, as it could still pose an obstacle if the EU and the UK fail to reach an agreement. It could be considered either too large or too small to justify accession.
It should be recalled that €60 billion of the €90 billion loan for Ukraine is allocated to military procurement. Contract priority is set as follows: Ukrainian manufacturers have first priority, followed by European suppliers, then British, Canadian and others, with the United States ranked last.
The UK is likely seeking to put its defence industry on an equal footing with EU countries in terms of priority, while also avoiding a situation in which France appears to be opposed. This would allow it to avoid competing with non-European proposals and could help strengthen its domestic defence industry.
It is known that the Armed Forces of Ukraine are actively using French-British Storm Shadow/SCALP missiles, LMM anti-aircraft missiles, various types of ammunition, and other equipment. Another interesting project is the Nightfall ballistic missile with a range of 500 km. There are currently no equivalents to it in Europe, so additional funding would be welcome.
Overall, it is important to remember that Hungary is currently blocking a €90 billion loan for Ukraine. There is hope that this may change after the upcoming elections, but other obstacles could arise, including potential opposition from Slovakia.
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