£2.26b UK loan to beef up Ukraine defence

KABUL (Pajhwok): The United Kingdom has signed an agreement with Ukraine to provide Kyiv with a £2.26 billion ($2.84 billion) loan backed by sanctioned Russian assets.

The UK government announced on Saturday it reinforced support for Ukraine with £2.26 billion loan to bolster Ukrainian defence capabilities.

The loan will bolster Ukrainian military capability and will be paid back using profits generated on sanctioned Russian sovereign assets.

Chancellor Rachel Reeves and Ukrainian Finance Minister Sergii Marchenko signed the formal loan agreement on March 1, with the first tranche of funding expected to reach Ukraine next week.

The loan demonstrates the UK’s commitment to Ukrainian defence. A strong Ukraine is vital to UK national security.

The agreement will deliver £2.26 billion in funding to Ukraine, which will be paid back using the extraordinary profits generated on sanctioned Russian sovereign assets held in the EU.

This is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, through which G7 nations will collectively provide $50 billion to support that country.

sa/mud