Ukrainian Finance Minister Serhiy Marchenko and UK Chancellor of the Exchequer Rachel Reeves signed an agreement to provide Kyiv with a loan of £2.26 billion (about $3 billion). It will be repaid from the profits of Russian assets frozen under sanctions, as stated on the UK government's website.
The funding will be provided in three equal annual payments of £752 million. The first tranche will arrive in Ukraine at the end of next week.
The British side notes that this loan demonstrates the UK's commitment to Ukrainian defense.
«A safe and secure Ukraine is a safe and secure United Kingdom. This funding will strengthen Ukraine's armed forces and place it in the strongest possible position at a critical moment in the war», — the statement says.
This loan followed a statement by Prime Minister Keir Starmer, in which the government committed to increasing UK defense spending to 2.5% of GDP by 2027, marking the largest sustained increase in defense spending since the Cold War.