Ukraine to receive first tranche of UK loan next week

Oleksii Pavlysh - 2 March, 10:59

UK Prime Minister Keir Starmer and Ukrainian President Volodymyr Zelenskyy. Photo: Ukraine's Finance Ministry

The first tranche of the latest UK loan to Ukraine, which totals £2.26 billion, is due to be disbursed to Ukraine next week.

Source: the UK Government's website

Quote: "The loan will be fully earmarked for military procurement to bolster Ukraine’s defences, with the first tranche of funding expected to be disbursed to Ukraine next week."

Details: The loan will be disbursed in three equal annual instalments of £752 million.

These funds are part of the G7's Extraordinary Revenue Acceleration (ERA) mechanism for Ukraine, amounting to US$50 billion. The loan will be serviced and repaid using future proceeds from frozen Russian sovereign assets.

Background: Ukraine and the United Kingdom signed a loan agreement worth about US$3 billion for Ukraine's defence needs.

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