The first tranche of the British loan will be paid to Ukraine next week

As Ukrinform reports, this information was published on the official website of the UK government.

“The loan funding will be used in full to purchase military equipment aimed at strengthening Ukraine’s defense capabilities, with the first tranche of funding scheduled to be paid to Ukraine next week,” the press release said.

It is important to note that the total funding will be provided in three equal annual instalments of £752 million.

In addition, the loan agreement announcement followed Britain's commitment to provide Ukraine with £3 billion in annual military aid.

“A safe and secure Ukraine is the key to the safety and security of the United Kingdom. This funding will strengthen Ukraine's armed forces and help the country to be in the best possible position at a critical moment in the war,” said UK Chancellor of the Exchequer Rachel Reeves.

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As reported by Ukrinform, on March 1, Ukraine and the UK signed an emergency loan agreement worth £2.26 billion (about $3 billion) to finance the purchase of defense materials. The funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) program, a G7-led mechanism with a total funding of $50 billion.

The loan will be repaid using income received from frozen Russian sovereign assets.