News
Oct 22, 2024
The Chancellor has announced a £2.26 billion loan for Ukraine, to purchase military equipment to defend itself against Russia.
The money 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.
Chancellor Rachel Reeves made the announcement while visiting Ukrainian personnel who are being trained in the UK. More than 45,000 personnel have been trained in the UK under Operation INTERFLEX.
The UK’s loan is earmarked as budgetary support for Ukraine’s military spending, such as air defence, artillery and wider equipment support.
Reeves said: “Our support for Ukraine and her men and women in their fight for freedom from Putin’s aggression is unwavering and will remain so for as long as it takes.
“This new money is in Britain’s national interest because the frontline of our defence – the defence of our democracy and shared values – is in the Ukrainian trenches. A safe and secure Ukraine is a safe and secure United Kingdom.”
Defence secretary John Healey, who was on the visit with Reeves, said: “By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine. This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression.”
“The UK is stepping up our support to Ukraine, speeding up supplies of vital equipment and boosting our defence industries. We will stand with Ukraine for as long as it takes.”
