Starmer says UK opening talks with EU on joining €90bn loan scheme for Ukraine
Good morning. In the UK many MPs will be spending the bank holiday campaigning for the elections on Thursday, but Keir Starmer is in Armenia, where he has announced that he wants the UK to join the EU’s €90bn (£78bn) loan for Ukraine.
Starmer is attending a European Political Community summit in Yerevan. The EPC is the group set up four years ago comprising all the EU countries, plus almost all the other European countries that are not EU members. Mark Carney, the Canadian PM, is also attending (on the grounds, presumably, that in the light of the geopolitical upheavel caused by Donald Trump, the Canadians now count as honorary Europeans.)
The €90bn loan for Ukraine is the one that has been long talked about, but which only became possible after Viktor Orbán, the pro-Russian Hungarian PM who was vetoing it, was kicked out of office last month. The advantage for the UK of joining (besides boosting military support for Ukraine) is that it would allow British firms to access the contracts the loan will fund.
Speaking to the media as he arrived at the summit, Starmer said:
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 is desperately needs in year five of this conflict.
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.
As Downing Street says in its news release, this initiative is not a one-off; it is part of Starmer’s bid to improve and deepen the UK’s post-Brexit relations with the EU.
The extra funding to Ukraine could unlock opportunity for British businesses to fill urgent capability needs for Ukraine as part of the initiative and give British defence industry access to major contracts.
The move is a significant step towards a new ambitious relationship between the UK and EU – building on the prime minister’s calls at the Munich Security Conference in February to deepen defence and security cooperation to match the rapidly evolving threats faced by both sides. It also comes ahead of the UK – EU summit, expected to be held this summer, where both sides will discuss further economic and security cooperation.
This morning the Times is splashing on a story saying that, if Starmer wants the UK to have closer access to the EU single market, it will have to start making annual payments to Brussels for the first time since Brexit, perhaps worth around £1bn a year. In response, the government said that it did not recognise this figure, but that it would not comment on ongoing negotiations.
Here is the agenda for the day.
Morning: Starmer is in Yerevan in Armenia for the EPC meeting, and is also due to hold various bilaterals. He is expected to be speaking to the media early afternoon (UK time).
10am: Anas Sarwar, the Scottish Labour leader, has a campaign event. And, separately, Russell Findlay, the Scottish Conservative leader, is campaigning in Edinburgh.
Afternoon: Kemi Badenoch, the Conservative leader, is campaigning in Essex.
We’re unlikely to have comments on open today, and so if you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
Key events
Tories accuse PM of ‘hit job on taxpayers’ after report says EU would make UK pay for better single market access
On Sky News Mel Stride, the shadow chancellor, has just said that in principle his party welcomes the announcement from Keir Starmer about joining the EU’s €90bn loan for Ukraine. (See 8.40am.) But he would want to see the details, Stride said.
However, his colleague Priti Patel, the shadow foreign secretary, was a lot less happy about the Times report suggesting the UK could end up paying the EU up to £1bn a year for better access to the single market.
In his Times report, Oliver Wright says:
European negotiators have made it clear that paying the cash, expected to amount to about £1bn a year, is a condition of further access to the EU’s single market.
They want Starmer to make the concession in principle at a summit between the prime minister and European leaders this summer before detailed negotiations on more integration.
“If the UK wants further integration they must ‘pay to play’,” one European diplomat said. “That is not unusual.”
The govenrment has not denied the story, although it has suggested it does not recognise the £1bn figure.
Commenting on the report, Patel said:
Starmer is unpicking Brexit and planning another undemocratic hit job on British taxpayers by signing us up to a £1bn annual payment to the EU.
Once again, this weak prime minister goes to the negotiating table, comes home empty-handed, having fleeced hard pressed taxpayers with his terrible judgment.
No 10 says UK set to announce further sanctions on Russian companies involved in military supply chains
The UK is set to announce further sanctions on Russian companies involved in military supply chains, Downing Street says. In its news release, it says:
The move to support the financial boost for Kyiv [see 8.40am] is expected to be followed by another tranche of stinging sanctions by the UK on Russian companies to disrupt military supply chains later this week, further degrading Russia’s military capability.
In recent weeks and months, Ukraine has successfully outmanoeuvred Russian forces and continued to regain territory, including 200sq km around Kherson, while imposing strategic cost on Russia. Losses on the battlefield now exceed Russia’s ability to mobilise replacements.
Here are some pictures of Keir Starmer at the European Political Community summit in Armenia. Downing Street says Starmer is only the second British prime minister to visit the country; the first was Margaret Thatcher in 1990.
Norwegian prime minister Jonas Gahr Store (left) and Italian prime minister Giorgia Meloni at the EPC summit. Photograph: Stefan Rousseau/PA
Starmer says UK opening talks with EU on joining €90bn loan scheme for Ukraine
Good morning. In the UK many MPs will be spending the bank holiday campaigning for the elections on Thursday, but Keir Starmer is in Armenia, where he has announced that he wants the UK to join the EU’s €90bn (£78bn) loan for Ukraine.
Starmer is attending a European Political Community summit in Yerevan. The EPC is the group set up four years ago comprising all the EU countries, plus almost all the other European countries that are not EU members. Mark Carney, the Canadian PM, is also attending (on the grounds, presumably, that in the light of the geopolitical upheavel caused by Donald Trump, the Canadians now count as honorary Europeans.)
The €90bn loan for Ukraine is the one that has been long talked about, but which only became possible after Viktor Orbán, the pro-Russian Hungarian PM who was vetoing it, was kicked out of office last month. The advantage for the UK of joining (besides boosting military support for Ukraine) is that it would allow British firms to access the contracts the loan will fund.
Speaking to the media as he arrived at the summit, Starmer said:
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 is desperately needs in year five of this conflict.
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.
As Downing Street says in its news release, this initiative is not a one-off; it is part of Starmer’s bid to improve and deepen the UK’s post-Brexit relations with the EU.
The extra funding to Ukraine could unlock opportunity for British businesses to fill urgent capability needs for Ukraine as part of the initiative and give British defence industry access to major contracts.
The move is a significant step towards a new ambitious relationship between the UK and EU – building on the prime minister’s calls at the Munich Security Conference in February to deepen defence and security cooperation to match the rapidly evolving threats faced by both sides. It also comes ahead of the UK – EU summit, expected to be held this summer, where both sides will discuss further economic and security cooperation.
This morning the Times is splashing on a story saying that, if Starmer wants the UK to have closer access to the EU single market, it will have to start making annual payments to Brussels for the first time since Brexit, perhaps worth around £1bn a year. In response, the government said that it did not recognise this figure, but that it would not comment on ongoing negotiations.
Here is the agenda for the day.
Morning: Starmer is in Yerevan in Armenia for the EPC meeting, and is also due to hold various bilaterals. He is expected to be speaking to the media early afternoon (UK time).
10am: Anas Sarwar, the Scottish Labour leader, has a campaign event. And, separately, Russell Findlay, the Scottish Conservative leader, is campaigning in Edinburgh.
Afternoon: Kemi Badenoch, the Conservative leader, is campaigning in Essex.
We’re unlikely to have comments on open today, and so if you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.