UK Announces £2.26 Billion Loan for Ukraine Using Frozen Russian Asset Funds
In a significant move to support Ukraine in its fight against Russia’s invasion, the UK has announced a loan of £2.26 billion using profits from frozen Russian assets. This announcement comes as part of the UK’s contribution to a $50 billion (£38.39 billion) loan package agreed upon by the G7 nations. The funding is being generated through interest from sanctioned Russian sovereign assets.
The loan will provide crucial financial support to Ukraine and could be utilised for air defence, artillery, or other military equipment. This financial aid is in addition to the UK’s ongoing support of £3 billion per year for Ukraine.
Chancellor Rachel Reeves emphasised the UK’s unwavering commitment to Ukraine, stating, “Our support for Ukraine and her people in their fight for freedom from Putin’s aggression is resolute and will continue for as long as necessary.” Reeves highlighted the importance of a secure Ukraine to ensure the safety and security of the United Kingdom.
The G7 leaders, including Britain, Canada, France, Germany, Italy, Japan, and the United States, along with officials from the EU, had agreed in June to use the interest from over £200 billion of frozen Russian assets to bolster Ukraine’s defence. Following Putin’s invasion of Ukraine in 2022, the allies froze Russian central bank assets held abroad, and these funds will now be channelled towards supporting Ukraine’s defence efforts.
Defence Secretary John Healey underscored the significance of using funds from sanctioned Russian assets to counter Putin’s aggression. Healey stated, “This urgent funding will directly bolster Ukraine’s defence capabilities, using the proceeds from assets that previously supported Putin’s war machine.” The UK government is gearing up to introduce new legislation to expedite the transfer of these funds to Ukraine.
Healey further affirmed the UK’s steadfast support for Ukraine, expressing the country’s commitment to expediting the supply of essential equipment and boosting its defence industries. “We stand in solidarity with Ukraine for as long as it takes,” Healey reiterated.
The new financial assistance marks a crucial step in the ongoing efforts to support Ukraine in defending its sovereignty and territorial integrity. With the UK’s proactive stance in using frozen Russian asset funds for this purpose, the international community stands united in backing Ukraine against external aggression.