The UK has announced a military loan of £2.26 billion to Ukraine to support the country in its ongoing fight against Russia.
The loan, part of the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine initiative, contributes to the $50 billion fund aimed at providing military, budgetary, and reconstruction support to Ukraine.
This loan, along with contributions from other G7 members, will be repaid using the profits from immobilised Russian sovereign assets.
Chancellor Rachel Reeves, who made the announcement alongside Defence Secretary John Healey, visited Ukrainian personnel currently being trained in the UK under Operation INTERFLEX, a training programme that has trained more than 45,000 Ukrainian personnel since its inception and has been extended until the end of 2025. Reeves expressed the UK’s unwavering support for Ukraine, stating, “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.”
According to the announcement:
“The $50 billion G7 ERA scheme was first announced at the G7 Leaders’ Summit in Apulia, Italy, in June this year. Russia’s obligation under international law to pay for the damage it has caused to Ukraine is clear and this G7 agreement is an important step to ensuring this happens. Today the UK has announced its contribution to the scheme and will introduce domestic legislation in the coming weeks to enable the transfer of the new funds to Ukraine as quickly as possible. The loan is on top of the £12.8 billion already committed in military, economic and humanitarian support to Ukraine.
The funding comes alongside the UK and international partners introducing the largest and most severe package of sanctions ever imposed on a major economy. Without this, Russia would have over $400 billion more for its war machine – enough to fund its illegal invasion for a further four years. The war is having an economic and human cost for Russia; it is soaking up 40% of Russia’s annual budget and last month the country suffered its highest rate of daily casualties since the war began.”
The loan will directly fund Ukraine’s military expenditure, enabling investments in critical equipment such as air defence systems, artillery, and broader military support, which are essential in Ukraine’s efforts to resist Russia’s ongoing invasion. The funding comes in addition to the UK’s existing annual £3 billion military aid, which the Prime Minister reaffirmed as part of the country’s long-term commitment to Ukraine.
The loan announcement comes on the heels of continued international sanctions imposed on Russia. The UK and its partners have imposed the largest package of sanctions ever levied on a major economy. Without these sanctions, Russia would have had over $400 billion more to fuel its military operations. According to the press release, Russia’s illegal war is consuming nearly 40% of its annual budget, and recent months have seen record-high casualty rates for Russian forces since the conflict began.
This announcement is a prelude to the Chancellor’s participation in the upcoming International Monetary Fund Annual Meetings in Washington D.C., where the UK will emphasise its continued commitment to supporting Ukraine and confronting global aggressors like Russia.
Earlier this month, Prime Minister Keir Starmer met with Ukrainian President Volodymyr Zelenskyy to discuss Ukraine’s path to victory in the ongoing conflict.
Awesome. More of this please.