The United Kingdom signed an agreement with Kyiv on March 1 to provide Ukraine with a loan worth 2.26 billion pounds ($2.84 billion) backed by frozen Russian assets.
The loan, which is part of the Group of Seven's (G7) Extraordinary Revenue Acceleration (ERA) credit initiative, was signed amid President Volodymyr Zelensky's visit to London to meet with U.K. Prime Minister Keir Starmer.
"The United Kingdom continues to stand in defense of Ukraine. Today's agreement, which contributes to strengthening Ukraine's defense capabilities, confirms this," Ukraine's Finance Minister Serhii Marchenko said in a statement.
The loan will go towards "purchasing defense equipment according to Ukraine's needs," the Finance Ministry said.
In October 2024, G7 countries came to an agreement that pledged to provide Ukraine with almost $50 billion loan.
The United States will contribute the bulk of the loan with $20 billion in assistance. The U.S. is closely followed by European Union countries, including France, Germany, and Italy, with a combined $19.4 billion. The remaining approximately $10 billion will be divvied up with Canada providing $3.7 billion, Japan providing $3.07 billion, and the U.K. providing $2.8 billion in loan funding.
Under the G7 ERA initiative, Ukraine had previously received $1 billion from the U.S. and $3.1 billion from the EU.
While Western countries have frozen $300 billion in Russian assets, they can only access the annual income generated by these funds, approximately $3.2 billion. These profits will back the $50-billion loan to Kyiv, while the vast majority of the assets are frozen in European countries.
In January, Zelensky and Starmer signed a 100-year partnership agreement during their meeting in Kyiv on Jan. 16. The wide-ranging deal encompasses cooperation in military, energy, scientific, cultural, economic, and other sectors.
The loan's announcement and Zelensky's visit to London comes amid the fallout of a heated exchange in the White House on Feb. 28 between Zelensky and U.S. President Donald Trump.
Earlier in the day, Starmer, in line with European allies, reaffirmed his country's support for Ukraine and Zelensky.
"We stand with Ukraine for as long as it may take," Starmer told reporters at a press briefing alongside Zelensky, adding that Ukraine has "full backing across the United Kingdom."
Dmytro Basmat
(Updated: )
