New Financial Support for Ukraine
In a decisive step to enhance Ukraine’s military capabilities amidst Russia’s unlawful invasion, the UK government has unveiled a £2.26 billion loan aimed at facilitating the purchase of critical military equipment. This initiative is part of the UK’s ongoing commitment to support Ukraine’s defence efforts.
Funding Backed by Sanctioned Russian Assets
The £2.26 billion loan constitutes the UK’s share of the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine programme, which totals $50 billion from G7 nations. The loan will be financed through profits generated from frozen Russian sovereign assets, turning sanctioned resources into vital military support for Ukraine.
Enhancing Ukraine’s Defence Capabilities
Chancellor Rachel Reeves announced the funding while visiting Ukrainian soldiers receiving training in the UK. More than 45,000 personnel have received training under Operation INTERFLEX, which has been extended at least until the end of 2025. This new financial injection will provide essential budgetary support, allowing Ukraine to procure vital military equipment, including air defence systems and artillery.
Continued Commitment to Military Aid
This loan is in addition to the UK’s annual commitment of £3 billion in military aid to Ukraine. Prime Minister Keir Starmer reiterated this pledge shortly after taking office, underscoring the UK’s unwavering support for Ukraine’s sovereignty. The UK has already supplied around 400 military capabilities, including a recent announcement of 650 Lightweight Multirole Missile systems to bolster Ukraine’s air defences.
Global Unity Against Aggression
Chancellor Reeves stated, “Our unwavering support for Ukraine and its fight for freedom against Putin’s aggression will continue for as long as necessary. This new funding aligns with Britain’s national interest, as the defence of democracy and shared values rests in Ukraine’s hands. A secure Ukraine directly contributes to a secure United Kingdom.”
Collaborative International Support and Sanctions
The G7 ERA scheme, first introduced during the G7 Leaders’ Summit in Apulia, Italy, in June, highlights the international community’s commitment to ensuring that Russia is held accountable for its actions. The UK government plans to expedite domestic legislation in the upcoming weeks to facilitate the rapid transfer of these funds to Ukraine.
Countering Russia’s Military Funding
This loan announcement coincides with the UK and its international allies implementing the most extensive sanctions package against Russia in history. Without these sanctions, Russia would have access to over $400 billion, which could finance its military operations for an additional four years. The ongoing conflict is draining Russia’s resources, accounting for 40% of its annual budget, and has led to record-high daily casualties for its forces.
Long-term Commitment to Support
Defence Secretary John Healey emphasised, “By utilising profits from these sanctioned Russian assets, we can effectively counter Putin’s military operations. This urgent funding will enhance Ukraine’s defence capabilities using resources that once supported aggression. The UK is intensifying its assistance to Ukraine, expediting the supply of crucial equipment and reinforcing our defence industry. We will remain committed to supporting Ukraine for as long as necessary.”
