The funding comes as part of a wider US$50bil package this year from the Group of Seven nations and the European Union that was announced in June. — Bloomberg
London: Britain will loan Ukraine £2.3bil or about US$2.9bil to purchase military equipment, paid for by profits generated by frozen Russian assets.
The funding comes as part of a wider US$50bil package this year from the Group of Seven (G7) nations and the European Union (EU) that was announced in June.
It’s the first time Britain has detailed its contribution.
The plan was for the EU and the United States to provide about US$20bil each, with Canada, Japan and Britain contributing the remainder.
“It’s turning the proceeds of Putin’s own corrupt regime against him by putting it into the hands as loans for the Ukrainians,” Defence Secretary John Healey told reporters at a briefing in London.
“The Ukrainians will make the call about the systems, the weapons, the ammunition that they most need,” Healey said.
The funding comes at a time when Ukraine desperately needs extra cash, with Russia making advances on the battleground and another winter approaching.
Speaking alongside Healey, Chancellor of the Exchequer Rachel Reeves said Britain wanted to get its portion of the package to Ukraine as quickly as possible.
Other G7 partners are expected to confirm their pledges at a meeting of ministers in Washington on Friday.
The G7 have collectively frozen about US$280bil of Russian central bank assets, with the vast majority of the funds in Europe, where they are expected to generate about US$3bil to US$5bil in profits a year.
But one snag with the US$50bil loan plan has been Hungarian opposition to changes to the EU’s sanctions regime, a step that is needed to unlock significant US funding.
The United States is expected to contribute to the loan despite Budapest’s continued opposition, according to people familiar with the matter. — Bloomberg
