UK transfers £752m to Ukraine from frozen Russian assets for defence
Ukraine has received the final tranche from the UK amounting to £752 million (about US$1 billion) under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative. The funds will be used to strengthen Ukraine's defence capabilities.
Source: European Pravda, citing Ukraine's Finance Ministry
Quote from Ukrainian Finance Minister Sergii Marchenko: "We are grateful to the Government of the United Kingdom for its consistent and resolute support of Ukraine in countering Russian aggression during the fifth year of full-scale war. The funding is earmarked and will be used to meet the priority needs of the security and defence sector."
Details: On 1 March 2025, Sergii Marchenko and his British counterpart Rachel Reeves signed an agreement on providing Ukraine with £2.26 billion (around US$3 billion) for defence needs.
Ukraine received the first two tranches, totalling £1.5 billion (about US1 billion), in March and April 2025.
For reference: The funds are part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism worth US$50 billion. The loan will be serviced and repaid from future revenues received from frozen Russian sovereign assets.
In 2024 and 2025, the G7 countries and the European Union have already provided Ukraine with nearly US$28 billion in funding under the ERA.
Background:
- After the defeat of the party of Hungary's incumbent prime minister in the country's 12 April elections, the EU expressed hope that both the €90 billion EU loan for Ukraine and the EU's 20th sanctions package against Russia would be swiftly unblocked.
- It was also reported that the first tranche of military assistance to Ukraine under the €90 billion EU loan will be used to procure Ukrainian-made drones.
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