The UK is taking a more prominent role in European security.

In its latest support package for Ukraine, the UK government has announced a GBP2.26 billion loan to support Ukraine’s security and a GBP1.6 billion deal for 5,000 air defence missiles.

These deals, announced on 1 and 2 March respectively, are part of efforts from the UK government to rally behind Ukraine and support European security. Prior to this, on 25 February the UK announced a 2.5% defence spending rise.

The GBP2.26 billion loan, intended for military procurement, forms part of the ‘UK-Ukraine Bilateral’ agreement, which UK Chancellor Rachel Reeves signed with Ukrainian Finance Minister Sergii Marchenko.

“The funding will be delivered in three equal annual payments of GBP752 million”, the press release stated, with funding paid for using profits generated from sanctioned Russian sovereign assets.

The second loan totalling GBP1.6 billion involves procuring 5,000 Lightweight Multirole Missiles (LMMs) from Thales UK in Belfast for Ukraine, boosting the UK’s domestic defence industry.

This contract was placed on behalf of the Ukrainian government, utilising a GBP3.5 billion loan signed last year, underwritten by UK Export Finance. This allows Ukraine to purchase military goods and services from UK companies up to the total value of the loan, following the July 2024 signing of the Defence Export Support Treaty.

The Light Multirole Missile

The Thales LMM is a precision strike missile, capable of being fired from land, air or sea. It hosts a precision laser guidance system, weighs 13kg, travels at Mach 1.5 and has a range of over 6km.

An earlier order for 650 LMMs for the UK Armed Forces was signed in September 2024 and delivered in December.