UK to use Russian windfall profits for £2.26B Ukraine war loan
British government promises to 'directly support Ukraine’s defense using the proceeds from assets that had helped fuel Putin’s aggression.'
The U.K. has approved a £2.26 billion military loan for Ukraine using the profits from frozen Russian assets, the Treasury said Tuesday, promising legislation to get the money flowing to Kyiv in the next few weeks.
In the summer, the leaders of G7 countries agreed to cream off the profits from around $280 billion in Russian sovereign assets that have been frozen since the country launched an all-out war on Ukraine in February 2022.
A total package of $50 billion would then be raised for Kyiv through the so-called Extraordinary Revenue Acceleration Loans for Ukraine (ERA) scheme, aimed at bolstering support to the war torn country and helping it pay for arms.
While clearing the windfall profits from Russian investments around the world has proven contentious in many countries, the U.K. government promises to “introduce domestic legislation in the coming weeks to enable the transfer of the new funds to Ukraine as quickly as possible.”
The extra financing comes in addition to the £3 billion a year in military aid that’s already flowing from the U.K., with the Labour government touting a total of £12.8 billion already contributed to Kyiv since the war began.
“By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine,” said Defence Secretary John Healey. “This urgent funding will directly support Ukraine’s defense using the proceeds from assets that had helped fuel Putin’s aggression.”
Healey recently said that the U.K. will deliver 650 Lightweight Multirole Missile systems to Ukraine to help it defend against airborne threats.
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