Ukraine has received £752 million ($970 million) as the first installment of the UK’s pledged loan, which is backed by frozen Russian assets, Prime Minister Denys Shmyhal announced on March 7. This funding is part of the G7’s $50 billion Extraordinary Revenue Acceleration scheme, aimed at supporting Ukraine’s defense and recovery efforts.
UK Commits £2.26 Billion to Ukraine
The UK has pledged a total of £2.26 billion ($2.9 billion) to Ukraine, to be delivered in three equal payments. The loan is covered by proceeds from immobilized Russian sovereign assets, which were frozen by the G7 in 2022 in response to Russia’s full-scale invasion.
Funding to Strengthen Ukraine’s Defense
Shmyhal confirmed that the newly received funds will be directed toward enhancing Ukraine’s defense capabilities. He expressed gratitude to British Prime Minister Keir Starmer, the UK government, and G7 partners for their support in leveraging Russian assets to aid Ukraine.
G7 Uses Frozen Russian Assets for Ukraine Aid
At the start of the war, G7 nations froze approximately $300 billion in Russian sovereign assets. Under the $50 billion loan initiative, the US and EU are among the primary contributors, ensuring that these funds are used for Ukraine’s security and post-war reconstruction.
Ukraine Pushes for Full Confiscation of Russian Assets
While Ukraine welcomes this funding, Shmyhal emphasized that Kyiv expects all frozen Russian sovereign assets to be fully confiscated and eventually transferred to benefit Ukraine. This remains a key demand as international discussions continue on how to hold Russia financially accountable for its aggression.
