The European Union is preparing to give Ukraine privileged access to the bloc’s Single Market as part of a final peace deal, according to reports. European Commission President Ursula von der Leyen is ready to push EU rules to “breaking point” with the move, The Telegraph reports.

The EU’s Single Market ensures the free movement of goods, services, capital and persons within the 27-nation union. The broadsheet reports the plan would see Brussels choose which sectors to open up to Kyiv and which to close. The news comes a day after EU leaders pledged to work together to enhance the continent’s defences and free up hundreds of billions of euros for security amid growing fears Europe must defend itself without the US.

Ukraine’s strong defence industry is reportedly key to the plan with the EU, with tariff-free access to Ukrainian arms bringing in money for Kyiv, while boosting the arsenals of EU nations.

The report added that, ideally, the plans would form the EU’s part of a final peace settlement but they do not depend on a deal being agreed as the exchange of Single Market access for arms will speed up Ukraine’s eventual EU membership.

Ukrainian President Volodymyr Zelensky visited the EU for talks on Thursday, when leaders signed off on a move to loosen budget restrictions to boost military spending.

Mr Zelensky welcomed the move and expressed hopes that some of the new spending could be used to strengthen Ukraine’s own defence industry which can produce weapons more cheaply than elsewhere in Europe.

He said: “We are very thankful that we are not alone, and these are not just words. We feel it. It’s very important.”

Ukraine applied to join the EU days after Russia’s full-scale invasion in 2022 and accession talks formally began last June.

Discussions between Ukraine and the US on ending the war are set to take place in Saudi Arabia next week.

The Trump administration has paused all military aid and intelligence-sharing to Kyiv in a major blow to Ukraine’s armed forces.