The European Union is close to an agreement that would allow Ukraine to use a €60 billion loan for defence procurement to purchase military equipment from the United Kingdom.

Reporting says the arrangement is expected to be formalized next week at a Paris meeting involving the “coalition of the willing,” with the European Commission and EU leadership attending. The key point is that British defence companies would be able to take part in the procurement through the EU-linked programme tied to the loan.

Under the proposed terms, there is not expected to be a fixed “access fee” for the UK. Instead, the UK government would make financial contributions depending on the specific contracts Ukraine places using the loan. Those contributions would be calculated based on contract values and the cost of interest.

The deal is also described as a diplomatic step after earlier friction over the UK’s participation in the EU’s larger SAFE defence fund framework, negotiations for which had stalled over EU demands for UK payment and related conditions. The new approach is framed as quicker to conclude and more focused on enabling immediate defence purchases for Ukraine as the EU and UK defence industries become more interconnected.

The EU Commission and the UK government were reported not to have commented on the details while negotiations remain in the final stages.