UK Announces £2 Billion War Loan for Ukraine

Ukraine will receive a £2.26 billion loan for purchasing military equipment to defend itself in its war with Russia, the government has announced.
The loan will be repaid to the UK using profits on sanctioned Russian sovereign overseas assets which were frozen after the invasion of eastern Ukraine in February 2022.
“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,” the Treasury said in a statement on Tuesday.
In the coming weeks, the government will introduce domestic legislation which will facilitate the transfer of funds to Kyiv.
The government says the loan will be used for frontline military equipment, including artillery and air defence.
Healey said in a statement: “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.”
The agreement, which comes into effect in July 2025, signed by Healey and his Estonian counterpart last week will see the Army’s 4th Brigade put on “high readiness” and could see soldiers sent to NATO’s eastern flank within 10 days of being called up.
Healey said the commitment reinforces the UK’s contribution to the alliance.
The defence secretary had travelled to NATO headquarters in Brussels for a meeting with defence ministers where he also agreed to plans to lead the new Diamond air defence system, which will integrate member states’ missile defences as well as see European allies develop new long-range weapons.
“This is part of the UK’s new determination to work more closely with other European allies on security for the future, and Europe’s security is guaranteed by this Nato alliance,” Healey said.
So far, Western leaders have not given public support to Zelenskyy’s request to remove the weapons restrictions.