Britain to grant Ukraine $2.93 bln loan funded by frozen Russian assets

Ukraine is set to be granted a $2.93 billion loan from Britain utilizing frozen Russian assets. This loan is part of the larger international aid package totaling US$50 billion from the G7 nations. The funds will support Ukraine's efforts to address military, budget, and reconstruction matters in response to Russian aggression.

The British government reported that on its website.

According to the statement of the British government, funds from this loan will be directed to the purchase of critical equipment for the Ukrainian military, in particular:

• air defense,
• artillery,
• other means of technical support.

This is additional financial support to the already existing military aid of 3 billion pounds a year. The loan will be repaid from profits from frozen Russian assets.

"The UK's £2.26 billion loan is earmarked as budgetary support for Ukraine's military spending, enabling the Ukrainians to invest in crucial equipment to support their efforts against Russia, such as air defense, artillery, and wider equipment support.

It comes on top of the UK's existing £3 billion a year military aid for Ukraine, which the Prime Minister re-committed to within his first week in office," the statement said.

It is worth reminding that on June 14, at the G7 Summit in Italy, the leaders of the G7 countries agreed to allocate about 50 billion US dollars to Ukraine by the end of the year. The funds will be serviced and repaid through future earnings from frozen sovereign Russian assets located in the European Union and other jurisdictions.

Subsequently, on June 24, the European Union countries approved the first tranche of military aid for Ukraine in the amount of 1.4 billion euros, which will come from the revenues from frozen Russian assets.

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In addition to financial aid, Great Britain has already transferred about 400 units of military equipment to Ukraine.

Moreover, British Defense Secretary John Healey announced a new delivery of 650 light multi-purpose missile systems to strengthen Ukrainian air defenses.

Great Britain also allocated 3.5 billion pounds sterling (almost 4.5 billion dollars) to Ukraine to purchase modern military equipment from British manufacturers.

Also, in September, it was reported that Great Britain announced the transfer of 16 AS90 self-propelled artillery systems to Ukraine, of which ten units have already been delivered.