The UK is using profits on frozen Russian assets to loan £2.26 billion to Ukraine to aid with its fight against Russia’s invasion, it has been announced.
The funds represent the UK’s share of a $50 billion (£38.39 billion) loan package agreed upon by the G7 nations, financed through interest generated from sanctioned Russian sovereign assets.
The money could be used to fund air defence, artillery or other military equipment and comes on top of the UK’s existing £3 billion-a-year support for Ukraine.
Announcing the package, Chancellor Rachel 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 front line 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.”
Leaders of the G7 – Britain, Canada, France, Germany, Italy, Japan and the United States – agreed in June, along with top officials from the European Union, where most of the Russian assets frozen as a result of the war are held.
In the wake of Putin’s 2022 invasion of Ukraine, the allies froze Russian central bank assets held abroad and the G7 agreed to use the interest from over £200 billion of these immobilized funds to support Ukraine’s defence.
The UK government plans to introduce new legislation within weeks to facilitate the swift transfer of the new funds to Ukraine.
Defence Secretary John Healey 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.”