The UK to provide Ukraine with a military loan of over £2 billion

22 October, 2024 A Ukrainian paratrooper firing an NLAW ATGM. Photo credits: Ministry of Defense of Ukraine The United Kingdom will provide Ukraine with a loan of GBP2.26 billion to purchase the necessary weapons.

This was reported on the British government's website. The funds will be used to purchase air defense systems, artillery systems, and other military equipment. The new GBP2.26 billion is the UK's contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, in which £50 billion from G7 countries will be delivered to Ukraine for its military, budget, and reconstruction needs.

The loan will be repaid using the extraordinary profits on immobilized Russian sovereign assets.

Ukrainian soldier with LMM Martlet MANPADS. Frame from the video of the Ukrainian Air Assault Forces

The UK's GBP2.26 billion loan is earmarked as budgetary support for Ukraine's military spending. It will enable the Ukrainians to invest in key equipment, such as air defense, artillery, and wider equipment support, to support their efforts against Russia.

It comes on top of the UK's existing GBP3 billion a year military aid for Ukraine. At the beginning of October, the UK Ministry of Defense reported that the UK had provided Ukraine with GBP3.5 billion (£4.58 billion) to purchase British-made weapons. A UK trade mission, formed of representatives from the Ministry of Defence, the Department for Business and Trade, and the Defense Trade Association ADS, visited the Ukraine Defense Industrial Forum to hold meetings with the Ukrainian Government and industry representatives.

During the meetings with Ukrainian officials, the British delegation sought to determine the list of the most needed weapons and equipment. The UK Ministry of Defense will sign contracts with the UK industry on Ukraine's behalf in accordance with the needs received.

Training of the Ukrainian military on AS-90 systems in the UK. March 2023.

Frame from a video by the UK Ministry of Defense

The UK government also intends to deliver more AS90 SPGs than previously reported.