The UK has lent Ukraine 752 million pounds (about $991 million) to buy military equipment, including air defence systems, artillery and spare parts to repair equipment.
The loan, which will be repaid with profits from frozen Russian sovereign assets in the EU, is part of a wider £2.26 billion loan agreed between London and Kiev on 1 March.
The funds are being provided in three separate tranches. The first arrived on 6 March, the second on 14 April, and the third is expected in 2026. According to the British government, this structure gives Ukraine more flexibility in resource management and combat operations.
“We are stepping up our support for Ukraine to deter Russian aggression and strengthen the UK’s national security,” Defence Secretary John Gili said in a statement.
Ukraine’s Finance Minister Serhiy Marchenko and U.K. Chancellor of the Exchequer Rachel Reeves signed an agreement on 1 March to provide Ukraine with a £2.26 billion (about three billion dollars) loan, the Treasury said on 1 March. The funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism of the G7 countries with a total volume of 50bn dollars.
The Extraordinary Revenue Acceleration (ERA) mechanism of the G7 countries provides Ukraine with about 50bn dollars in the form of loans secured by profits from frozen Russian sovereign assets. These funds are intended to support Ukraine’s budget, military needs and infrastructure reconstruction.