The United Kingdom will provide Ukraine with a loan of £2.26 billion (approximately $2.93 billion). It will be repaid using the income from frozen Russian assets.
This is reported on the British government's website.
The loan from Britain is intended for budget support of Ukraine's military expenditures. It aims to help the country invest in key equipment to support its efforts in the war initiated by Russia. This includes air defense, artillery, and "broader equipment support."
"By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine. This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression," said Defence Secretary John Healey.
Additionally, the funds are in addition to the existing annual military aid from Britain to Ukraine, which amounts to £3 billion.
The government website emphasized that the new £2.26 billion is a contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, under which $50 billion from G7 countries will be provided to Ukraine for its military, budgetary, and recovery needs. The government reiterated that the loan will be repaid using the profits from frozen Russian assets.
"The UK is stepping up our support to Ukraine, speeding up supplies of vital equipment and boosting our defence industries. We will stand with Ukraine for as long as it takes," said Defence Secretary John Healey.
It should be noted that Britain is the first G7 country to launch such a mechanism.
