Ukraine and UK sign £2.26bn loan agreement

The Ministry of Finance of Ukraine reported this on its official website, as reported by Ukrinform.

The agreement was signed by Ukrainian Finance Minister Serhiy Marchenko and UK Chancellor of the Exchequer Rachel Reeves.

The online signing ceremony was attended by Ukrainian President Volodymyr Zelensky and British Prime Minister Keir Starmer.

The funds are part of the Ukraine Emergency Revenue Acceleration (ERA) initiative, a G7-led mechanism with a total funding of $50 billion. The loan will be repaid from future revenues generated by frozen Russian state assets.

The funding is provided for a period of 30 years and will be used to purchase defensive materials tailored to Ukraine's specific needs.

“The United Kingdom continues to strongly support Ukraine. The agreement signed today, which strengthens Ukraine's defence capabilities, is a testament to that. I thank the UK Government for this support and [Chancellor of the Exchequer] Rachel Reeves for her significant efforts to ensure this agreement can be reached,” the statement said.

Under the ERA mechanism, Ukraine has already received $1 billion from the United States and €3 billion from the European Union.