London (TDI): The United Kingdom has provided a £2.26 billion loan to Ukraine. The loan will help boost the military capability of Ukraine, and will be paid back using the profits generated on the frozen assets of Russia held in the EU.
On Saturday, the British Prime Minister, Keir Starmer welcomed Ukrainian President Volodymyr Zelenskyy to his office at Downing Street, where he announced to enhance the military capability of Ukraine, by providing it a £2.26 billion loan.
Chancellor Rachel Reeves and Ukrainian Finance Minister, Sergii Marchenko, signed the formal agreement. The first installment of funding is expected to reach Ukraine this week.
Chancellor of the Exchequer, Rachel Reeves said, “A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.”
In October 2024, the EU and G7 countries decided to collectively provide $50 billion to support Ukraine’s budgetary, military, and reconstruction needs.
This loan will be the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme. Ukraine will receive the funding in three equal annual payments of £752 million.
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The President of Ukraine, Volodymyr Zelenskyy, thanked the British government for the financial support. He said, “This loan will enhance Ukraine’s defence capabilities and will be repaid using revenues from frozen Russian assets.”
He further stated, “The funds will be directed toward weapons production in Ukraine. This is true justice – the one who started the war must be the one to pay.”
London. A meaningful and warm meeting with Prime Minister @Keir_Starmer.
During our talks, we discussed the challenges facing Ukraine and all of Europe, coordination with partners, concrete steps to strengthen Ukraine’s position, and ending the war with a just peace, along with… pic.twitter.com/IAwcPgbhYW
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) March 1, 2025
According to the British Government, the loan agreement is on top of the £3 billion a year commitment by the UK to provide military aid for Ukraine. Prime Minister Keir Starmer has been clear that a strong Ukraine is vital to UK national security.
Also Read: UK, NATO Support Ukraine’s Peace and Sovereignty
Earlier, the British Prime Minister announced his commitment to increasing the defence spending of the United Kingdom to 2.5% of GDP by 2027. This will represent the biggest sustained increase in the UK’s defence spending since the Cold War, aiming at safeguarding the collective security of Britain and its allies.
In February, the Defence Secretary of the United Kingdom announced a military support package of £150 million, to support Ukrainian ground troops fighting against Russia. The aid was part of Britain’s unprecedented £3 billion annual pledge to Ukraine.
The United Kingdom has committed to spending £3 billion next financial year. With the additional £1.5 billion from interest on seized Russian assets through the Extraordinary Revenue Accelerator, the total funding will reach £4.5 billion, the British Government said.
