The UK government has announced an additional £2.26 billion ($2.93 billion) in funding for Ukraine, sourced from profits on Russian assets held in Europe. This contribution forms part of a larger £38 billion ($50 billion) fund pledged by G7 nations earlier this year to support Ukraine in its ongoing conflict.
Defence Secretary John Healey emphasized that the funding will bolster Ukraine’s frontline military, describing it as “turning the proceeds of Putin’s corrupt regime against him” by providing essential resources to Kyiv. The UK’s financial support will allow Ukraine to acquire crucial military equipment, including air defences and ammunition.
Chancellor Rachel Reeves stated the funds will be distributed swiftly in the form of a loan, with the UK aiming to recover the costs through sanctions on Russian assets. However, she clarified that the UK is not confiscating Russian sovereign assets, but using the profits and interest accrued from them.
G7 members are expected to finalize their own contributions to the fund in the coming weeks, with some nations planning to direct the funds towards Ukraine’s post-war reconstruction. The payments will be made in stages, and the UK has stated it will be up to Ukraine to decide how to allocate its contribution.
This new funding is in addition to the £3 billion already pledged by the UK government for Ukraine’s war efforts, bringing the total UK military aid to over £12 billion. The government has committed to maintaining this level of support for Ukraine in the future.
During a joint announcement with Reeves, Healey reiterated the UK’s unwavering support for Ukraine, stating that assistance will continue “for as long as it takes.” The announcement comes ahead of next week’s Budget, where the UK government will outline its broader spending plans, including public services.
Reeves reaffirmed the government’s commitment to spending 2.5% of GDP on defence, though no specific timetable was provided.