Britain will lend Ukraine £2.26 billion ($2.94 billion) as part of a larger Group of Seven (G7) loan, supported by frozen Russian central bank assets. The funds are designated for military purposes and infrastructure rebuilding in Ukraine, which has been devastated by Russia’s ongoing invasion.
Defence Minister John Healey stated that the loan will help Ukraine purchase military equipment, including drones capable of traveling further than some long-range missiles. He noted that discussions on the loan had been a focus of recent talks between Ukrainian President Volodymyr Zelenskiy and British Prime Minister Keir Starmer.
Healey emphasised that Ukraine could use the funds to procure the weapons it needs most, though he did not confirm if it would be used to purchase British-made Storm Shadow missiles. “They are developing very heavily the use of even longer-range drones,” Healey said.
The G7 announced the broader $50 billion loan in June, funded by profits from about $300 billion in frozen Russian assets. The assets were seized shortly after Russia’s invasion of Ukraine in February 2022, with Russia repeatedly condemning their use as illegal.
Western nations are hastening talks to secure funding for Ukraine, especially amid concerns that a potential victory by U.S. Republican presidential candidate Donald Trump could reduce American support. The European Union has already pledged €35 billion ($38 billion) as part of its contribution, while Britain’s commitment is in addition to the £12.8 billion ($16.61 billion) it has already allocated to Ukraine.
Finance Minister Rachel Reeves confirmed that the loan would be disbursed in stages, ensuring ongoing support for Ukraine’s defence and reconstruction efforts.
Melissa Enoch
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