Ukraine will receive a $3 billion loan from the United Kingdom to purchase military equipment, paid for by the profits generated from frozen Russian assets.
G7 members collectively froze about $280 billion of Russian central bank assets in response to Putin’s invasion of Ukraine.
The vast majority of funds are in Europe and are expected to generate about $3-5 billion in profits a year.
Chancellor of the Exchequer Rachel Reeves (C) with soldiers and staff at the Stanford Training Area on Oct. 20, 2024, near Thetford, England, where some Ukrainian personnel are being trained. The U.K. on Sunday announced…
Chancellor of the Exchequer Rachel Reeves (C) with soldiers and staff at the Stanford Training Area on Oct. 20, 2024, near Thetford, England, where some Ukrainian personnel are being trained. The U.K. on Sunday announced a $3 billion loan to Ukraine, paid for by the profits generated from frozen Russian assets.
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According to a release by the U.K. government, the new money for Ukraine will be used to bolster equipment on the front line.
The funding is part of a $50 billion package announced by G7 nations and the European Union.
The plan includes contributions of around $20 billion each from the E.U. and the U.S., with Canada, Japan, and the U.K. making up the rest.
The Chancellor Rachel Reeves made the announcement alongside Defense Secretary John Healey while visiting Ukrainian personnel who are being trained in the U.K.
“It’s turning the proceeds of Putin’s own corrupt regime against him by putting it into the hands as loans for the Ukrainians,” Defense Secretary John Healey told reporters at a briefing in London.
“The Ukrainians will make the call about the systems, the weapons, the ammunition that they most need.”
“This is about reinforcing their ability to defend against this brutal, illegal invasion,” Healey said. “And to ensure that we play our fullest part as the U.K. in making sure Ukraine prevails.”
Reeves said that Britain wanted to get its portion of the package to Ukraine as quickly as possible.
“Our support for Ukraine and her men and women in their fight for freedom from Putin’s aggression is unwavering and will remain so for as long as it takes,” said Reeves.
“This new money is in Britain’s national interest because the front line of our defense—the defense of our democracy and shared values—is in the Ukrainian trenches. A safe and secure Ukraine is a safe and secure United Kingdom.”
Ukraine is in desperate need of more cash, as Russia makes advances and winter approaches.
Other G7 partners are expected to confirm their pledges in Washington on Friday.
The loan plan has struggled with Hungarian opposition to changes to the E.U. sanctions regime, but the U.S. is expected to contribute despite Hungary’s continued opposition.
The loan is on top of the £12.8 billion [$16.6 billion] already committed in military, economic and humanitarian support to Ukraine, said the U.K. government.
More than 45,000 personnel have been trained in the U.K. under Operation INTERFLEX and the scheme has been extended to at least the end of 2025.
The U.K. has sent around 400 different capabilities to Ukraine, with Defense Secretary John Healey recently announcing that the country will supply 650 Lightweight Multirole Missile systems to Ukraine to boost its air defenses.