UK announces $2.93B loan to Ukraine backed by profits from frozen Russian assets

The United Kingdom has announced a £2.26 billion (about $2.93 billion - ed.) loan to Ukraine backed by profits from sanctioned Russian sovereign assets.

This is said in a press release published on the UK government website, Ukrinform reports.

“Ukraine will receive further funding to purchase essential military equipment to defend itself against Russia’s illegal invasion, as the Chancellor today announces that the Government will loan a further £2.26 billion in new money to Ukraine,” the document reads.  

As noted, the new £2.26 billion is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, in which $50 billion from G7 countries will be delivered to Ukraine for its military, budget and reconstruction needs.

The loan will be repaid using the extraordinary profits on immobilised Russian sovereign assets.

“The UK’s £2.26 billion loan is earmarked as budgetary support for Ukraine’s military spending, enabling the Ukrainians to invest in key equipment to support their efforts against Russia, such as air defence, artillery and wider equipment support. It comes on top of the UK’s existing £3 billion a year military aid for Ukraine, which the Prime Minister re-committed to within his first week in office,” the statement says.

As reported, in June 2024, the G7 leaders agreed to provide Ukraine with a $50 billion loan to be repaid from future proceeds on approximately EUR 260 billion of frozen Russian foreign reserves, most of which are held in Euroclear, a Belgium-based financial services company.