Ukraine, UK sign GBP 2.26B loan agreement

The Ukrainian Finance Ministry announced the signing in a statement on its website, according to Ukrinform.

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

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

The funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, a G7-led mechanism with a total funding pool of $50 billion. The loan will be serviced and repaid using future revenues generated from frozen Russian sovereign assets.

The financing is provided for a 30-year term, and the funds will be directed toward purchasing defense materials based on Ukraine's specific needs.

"The United Kingdom continues to stand firmly in defense of Ukraine. Today's agreement, which strengthens Ukraine's defense capabilities, is proof of that. I am grateful to the British government for this support and to [British Finance Minister] Rachel Reeves for her significant efforts in making this agreement possible," the statement said.

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

Photo credit: Ukrainian Finance Ministry