A £752 million payment has today been sent to Ukraine through the
Extraordinary Revenue Acceleration Loans for Ukraine scheme. The
funding will support Ukraine to procure vital military equipment,
including urgently needed air defence. This comes as Russia
continues its air assault on Ukraine, striking the city of Sumy
today.
The loan, which will be paid for through the profits of
sanctioned Russian sovereign assets in the EU, forms part of a
wider £2.26 billion loan agreed between the Chancellor and
Minister Marchenko on 1 March.
The payment highlights the UK's steadfast support to Ukraine
whilst building on the Chancellor's Spring Statement pledge to go
further and faster to protect our national security and maximise
the economic growth potential of the UK defence sector. The
equipment support and maintenance elements will be mainly spent
in the UK, boosting the UK economy and skilled jobs.
, Chancellor of the Exchequer,
said:
“The world is changing before our eyes, reshaped by global
instability, including Russian aggression in Ukraine.
“A strong Ukraine is vital to UK national security and this
second tranche of funding will help put them in the strongest
possible position, and contribute towards our collective
security.”
Defence Secretary MP said:
“2025 is the critical year for Ukraine and
this is the critical moment. This is the moment for our defence
industries to step up, and they are; a moment for our militaries
to step up, and they are; a moment for our Governments to step
up, and we are.
“This new tranche of funds is part of our £4.5 billion of
military support this year – more than ever before – and will be
used to buy urgently needed air defence, artillery, and parts to
help repair vehicles and equipment to get them back into the
fight.
“We are stepping up support for Ukraine to deter Russian
aggression and bolster Britain's national security as the
foundation of our Plan for Change."
Today's payment forms the second part of the UK's £2.26 billion
loan, which has been spaced into three separate tranches to give
Ukraine more flexibility and allow them to swiftly adapt to the
ever-changing battlefield. The first payment was made on 6 March,
with the final payment to follow in 2026.
The multi-billion payment forms part of the UK's contribution to
the Extraordinary Revenue Acceleration Loans for Ukraine scheme,
which is a G7 commitment to collectively support Ukraine through
a total of $50 billion.
It follows a £450 million surge in military support that was
announced by the UK last week, which includes £350 million from
this year's record £4.5 billion military support funding for
Ukraine. Further funding is being provided by Norway, via the
UK-led International Fund for Ukraine.
In addition to providing financial support, the Ministry of
Defence will also support Ukraine to procure the equipment needed
to fight Russia's invasion. This will include a new
‘close fight' military aid package – with funding for radar
systems, anti-tank mines and hundreds of thousands of drones -
worth more than £250 million, using funding from the UK and
Norway.
The Government's Plan for Change will see UK defence spending
increased to 2.5% of GDP by 2027. The UK's world-leading defence
sector is vital to the economy, supporting 430,000 high-skilled,
high-paid jobs across the UK and strengthening our security. 68%
of defence spending is outside of London and the South East,
benefitting every nation and region of the UK.
