The United Kingdom will provide Ukraine with a loan of £2.26 billion (approximately $2.93 billion). This will be repaid using the revenues from frozen Russian assets.
This information was reported on the UK government’s website.
The loan from Britain is intended to support Ukraine's military spending. It aims to enable the country to invest in essential equipment to bolster its efforts in the war instigated by Russia. This includes air defense, artillery, and "broader equipment support."
Additionally, these funds are on top of the existing annual military assistance from Britain to Ukraine, which amounts to £3 billion.
The government emphasized that the new £2.26 billion is a contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, under which $50 billion from G7 countries will be allocated to Ukraine for its military, budgetary, and recovery needs. The government reiterated that the loan will be repaid from the profits generated by frozen Russian assets.
It is noteworthy that Britain is the first among G7 countries to implement such a mechanism.
Earlier, the IMF allocated $1.1 billion to Ukraine for budget support.