The United Kingdom has announced a £2.26 billion military loan to Ukraine to support it in its fight against Russian aggression. The loan is part of the G7’s Extraordinary Revenue Acceleration Loans (ERAL) initiative, which totals $50 billion and is aimed at military, budgetary and reconstruction support for the country, according to the Ministry of Finance of Ukraine.
The loan, along with contributions from other G7 countries, will be repaid from the proceeds of frozen Russian sovereign assets. Chancellor Rachel Reeves, who made the announcement alongside Defence Secretary John Healey, visited Ukrainian troops undergoing training in the UK as part of Operation INTERFLEX. This programme has already trained more than 45,000 Ukrainian servicemen and women since its launch and will continue until the end of 2025. Reeves reiterated the UK’s unwavering support, saying: “Our support for Ukraine and its brave people in their fight for freedom from Putin’s aggression remains unwavering and will continue for as long as it takes.”
The statement reads:
“The $50 billion G7 loan programme was first announced at the G7 leaders’ summit in Puglia, Italy, in June this year. Under international law, Russia is obliged to pay for the damage it has caused to Ukraine, and this agreement is an important step towards ensuring that it does. Today, the UK announced its contribution to the programme and will shortly introduce legislative initiatives to transfer the new funds to Ukraine as soon as possible. This loan is in addition to the £12.8 billion already provided for military, economic and humanitarian support to Ukraine.”
This funding is in addition to the largest package of sanctions ever imposed on a major economy by the UK and its international partners. Without these sanctions, Russia would have more than $400 billion to fund its war machine, enough to continue its illegal war for another four years. The war has already resulted in significant economic and human losses for Russia: Almost 40% of its annual budget is spent on the war, and last month the country suffered its highest casualty rate since the conflict began.
This loan will directly fund Ukraine’s military spending, including investment in critical defence systems, artillery and other military equipment needed to resist a Russian invasion. This funding is also in addition to the UK’s annual £3 billion in military assistance, which the Prime Minister has confirmed as part of the UK’s long-term commitment to Ukraine.
The announcement of the loan came as international sanctions against Russia have been tightened. The war is causing Russia significant economic losses, and the country recently suffered record military casualties since the conflict began.
The statement also heralds Chancellor Reeves’ attendance at the International Monetary Fund’s annual meeting in Washington, where the UK will reaffirm its commitment to supporting Ukraine and standing up to global aggressors such as Russia.
Earlier this month, Prime Minister Keir Starmer met with Ukrainian President Volodymyr Zelenskyy to discuss ways to win the war.
