Britain is set to lend Ukraine 2.26 billion pounds ($2.94 billion), contributing to a broader financial package from the Group of Seven nations. This initiative, supported by frozen Russian central bank assets, aims to assist Ukraine in acquiring weapons and rebuilding its damaged infrastructure.
Defence Minister John Healey announced that Britain’s financial contributions will be exclusively allocated to Ukraine’s military efforts. He indicated that these funds could facilitate the development of drones with capabilities surpassing those of certain long-range missiles.
Healey noted that discussions regarding Britain’s portion of the G7 loan had taken place between Ukrainian President Volodymyr Zelenskiy and Prime Minister Keir Starmer during their meeting in London two weeks prior and among G7 defense ministers in Italy over the weekend.
When questioned about whether Britain would permit Ukraine to utilize funds for the purchase of British-made Storm Shadow missiles aimed at striking targets deep within Russia, Healey responded to reporters, stating, “They are developing very heavily the use of even longer-range drones.” They will collaborate with us regarding the allocation of these funds and the specific weapons they require most urgently.
In June, the G7 revealed plans to extend a $50 billion loan to support Ukraine. Repayments are expected to be funded by the profits from approximately $300 billion in Russian sovereign assets that have been frozen in Western countries.
Following Russia’s full-scale invasion of Ukraine in February 2022, the assets were promptly frozen. Russia has issued multiple warnings regarding potential retaliation against any attempts to utilize frozen Russian assets for the financing of Ukraine, labeling such actions as unlawful.
Discussions surrounding the G7 loan are intensifying as Western nations seek to ensure financial assistance for Ukraine. This urgency stems from apprehensions that a victory for Republican presidential candidate Donald Trump in the upcoming U.S. election could lead to a decrease in support for the country.
The European Union, which holds the majority of the blocked Russian assets, has confirmed its commitment to contribute 35 billion euros ($38 billion) as part of the bloc’s allocation.
The United Kingdom’s latest contribution adds to its already substantial commitment of 12.8 billion pounds ($16.61 billion) to support Ukraine.
Finance Minister Rachel Reeves announced that the one-off loan will be disbursed in multiple tranches.
