Hassan Magulumali
The United Kingdom has signed an agreement with Ukraine to provide a £2.26 billion ($2.84 billion) loan, backed by profits from frozen Russian assets.
The loan is part of the Group of Seven (G7) Extraordinary Revenue Acceleration (ERA) credit initiative and was formalized during Ukrainian President Volodymyr Zelensky’s visit to London, where he met with U.K. Prime Minister Keir Starmer.
According to Ukraine’s Finance Minister Serhii Marchenko, the loan will be used to purchase defense equipment based on Ukraine’s strategic requirements. Marchenko stated that the United Kingdom continues to stand in defense of Ukraine and that the agreement contributes to strengthening Ukraine’s defense capabilities.
The U.K.’s loan is part of a larger $50 billion assistance package pledged by G7 nations in October 2024. The loan will be backed by interest generated from approximately $300 billion in frozen Russian assets, the majority of which are held in European countries.
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While Western countries have frozen $300 billion in Russian assets, these funds cannot be directly accessed. However, they generate an estimated $3.2 billion per year in profits, which will be used as collateral for the $50 billion loan to Ukraine.
The loan agreement follows the signing of a 100-year partnership deal between the U.K. and Ukraine on January 16, 2025. The agreement covers cooperation in military, energy, scientific, cultural, and economic sectors. During his visit to London, Prime Minister Keir Starmer reaffirmed the U.K.’s commitment to Ukraine, stating that the country has full backing across the United Kingdom and that support will continue for as long as necessary.
Zelensky’s visit to London comes amid recent geopolitical developments, including a confrontation at the White House with U.S. President Donald Trump. Reports indicate that Trump ordered Zelensky to leave during their meeting, highlighting ongoing tensions between the two leaders. Meanwhile, European leaders continue to align in their commitment to providing financial and military support to Ukraine. As part of the ongoing G7 initiative, Ukraine is expected to receive further assistance aimed at bolstering its defense capabilities and economic stability.
I haven’t checked in here for some time because I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂