EU to demand UK cover 70 billion euro Ukraine gap

European Union leaders will confront Prime Minister Andy Burnham over Britain's contribution to Ukraine's defence budget during a summit in Brussels on 20 November. The bloc intends to argue that the UK, along with Canada and Japan, must increase its financial support for Kyiv.

Brussels asserts that requests for extra aid from these G7 nations at recent international meetings have gone unanswered. Ursula von der Leyen, president of the European Commission, will first approach Canadian Prime Minister Mark Carney at an EU-Canada summit in Montreal next week. She will make a similar request to Burnham when he meets with her and European Council president António Costa in November.

The timing creates pressure for the British government. Chancellor John Healey is preparing his first budget next week while balancing demands for increased spending against rising borrowing costs and a worsening economic outlook. Healey stated earlier this month that he was working on different ways to step up support for Ukraine, including military, diplomatic, and economic measures.

Ukraine faces a funding shortfall of 70 billion euros, or 58 billion pounds, in 2027 to cover defence and civilian needs. The European Union and its member states currently pay for 80 percent of Ukraine's financial needs. The commission considers a fair share for the EU to be two-thirds, with the remaining third covered by other allies. Von der Leyen told reporters last week that the EU would continue to lead but urgently needs other partners to step up.

Last year, the EU agreed to a 90 billion euro loan for Ukraine, intended to cover two-thirds of Kyiv's funding for 2026 and 2027. However, Russia has escalated its attacks as the war enters its fifth winter, causing Ukraine's costs to rise. EU officials have prioritized the UK, Canada, and Japan but may also seek aid from Switzerland, South Korea, Australia, and New Zealand.

British officials say the UK has committed 25 billion pounds to Ukraine, including 16 billion pounds in military aid. The UK ranks as Ukraine's fourth-largest donor, behind the US, Germany, and France, according to the Kiel Institute's Ukraine Support Tracker. Weighted by GDP, the UK contributed 0.86 percent of national income. France contributed 1.1 percent, and Germany contributed 1.5 percent. Denmark and Estonia contributed 4.2 percent and 3.8 percent, respectively. The UK's contribution aligns more closely with France and Germany once their EU programme payments are excluded.

Ukraine will be one of several topics at the November summit, where leaders are expected to finalize three agreements. These include a food and animal health deal to reduce Brexit paperwork, a linkage of EU and UK emissions trading schemes to protect British industry from carbon taxes, and a youth mobility scheme allowing those aged 18 to 30 to live, work, and study across the Channel.

The European Commission proposed deferring the issue of university tuition fees to technical talks within six months of the summit. This move aims to avoid derailing the leaders' meeting. The UK wants to charge EU students the international rate, which is about four times the domestic fee, while the EU seeks a return to pre-Brexit home rates. Senior EU sources believe they retain leverage because the food and emissions deals will not take effect until a youth mobility agreement is accepted.

An EU diplomat described the three elements as a gift to the UK but noted it was not a massive one. The diplomat added that the leverage lies in the UK's need for these agreements. A second diplomat said there was no consensus among the 27 member states on postponement, stating there was no clear majority willing to drop the issue for six months.