Ukraine will receive further funding to purchase essential
military equipment to defend itself against Russia's illegal
invasion, as the Chancellor today announces that the Government
will loan a further £2.26bn in new money to Ukraine.
The new £2.26bn is the UK's contribution to the G7 Extraordinary
Revenue Acceleration (ERA) Loans to Ukraine scheme, in which
$50bn from G7 countries will be delivered to Ukraine for its
military, budget and reconstruction needs. The loan will be
repaid using the extraordinary profits on immobilised Russian
sovereign assets.
The Chancellor made the announcement
alongside Defence Secretary while visiting Ukrainian
personnel who are being trained in the UK. More than 45,000
personnel have been trained in the UK under Operation INTERFLEX
and the scheme has been extended to at least the end of 2025.
The UK's £2.26bn loan is earmarked as budgetary support for
Ukraine's military spending, enabling the Ukrainians to invest in
key equipment to support their efforts against Russia, such as
air defence, artillery and wider equipment support. It comes on
top of the UK's existing £3bn a year military aid for Ukraine,
which the Prime Minister re-committed to within his first week in
office.
The UK has sent around 400 different capabilities to Ukraine,
with Defence Secretary MP recently announcing that the
UK will supply 650 Lightweight Multirole Missile systems to
Ukraine to boost the country's air defences.
Chancellor of the Exchequer :
“Our support for Ukraine and her men and women in their fight for
freedom from Putin's aggression is unwavering and will remain so
for as long as it takes.
“This new money is in Britain's national interest because the
frontline of our defence – the defence of our democracy and
shared values – is in the Ukrainian trenches. A safe and secure
Ukraine is a safe and secure United Kingdom.”
The $50bn G7 ERA scheme was first announced at the G7 Leaders'
Summit in Apulia, Italy, in June this year. 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. Today the UK has announced its
contribution to the scheme and will introduce domestic
legislation in the coming weeks to enable the transfer of the new
funds to Ukraine as quickly as possible.
The loan is on top of the £12.8bn already committed in military,
economic and humanitarian support to Ukraine.
The funding comes alongside the UK and international partners
introducing the largest and most severe package of sanctions ever
imposed on a major economy. Without this, Russia would have over
$400 billion more for its war machine – enough to fund its
illegal invasion for a further four years. The war is having an
economic and human cost for Russia; it is soaking up 40% of
Russia's annual budget and last month the country suffered its
highest rate of daily casualties since the war began.
The loan announcement comes ahead of the Chancellor's attendance
of the International Monetary Fund Annual Meetings in Washington
D.C. later this week, at which she will underline on the
international stage that the UK and its partners stand united and
will not let aggressors like Putin succeed. Earlier this month
Prime Minister hosted Ukrainian President
Volodymyr Zelenskyy in Downing Street to discuss his victory plan
for Ukraine.
Defence Secretary , said:
“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.”
Notes to editors:
- This factsheet summarises
how the UK is supporting Ukraine following Russia's invasion.
