UK pledges $2.8-billion loan to Ukraine backed by frozen Russian assets PHOTO

The United Kingdom has signed an agreement with Kyiv to provide Ukraine with a £2.26 billion ($2.84 billion) loan backed by frozen Russian assets. 

The agreement, part of the Group of Seven's (G7) Extraordinary Revenue Acceleration (ERA) credit initiative, was formalized during Ukrainian President Volodymyr Zelenskyy's visit to London on March 1, Caliber.Az reports via Ukrainian media.

The announcement comes amid heightened tensions following a heated exchange between Zelenskyy and U.S. President Donald Trump at the White House on February 28.

In response, U.K. Prime Minister Keir Starmer reaffirmed his country's unwavering support for Ukraine.

"We stand with Ukraine for as long as it may take," Starmer declared during a press briefing alongside Zelenskyy. "Ukraine has full backing across the United Kingdom."

The loan will be used to enhance Ukraine's defense capabilities, specifically to procure necessary defense equipment, according to Ukraine's Finance Ministry.

Finance Minister Serhii Marchenko emphasized the significance of the deal, stating, "The United Kingdom continues to stand in defense of Ukraine. Today's agreement, which contributes to strengthening Ukraine's defense capabilities, confirms this."

The loan is part of a broader G7 financial commitment to Ukraine, finalized in October 2024, which includes nearly $50 billion in assistance. The United States will provide the largest share with $20 billion, while European Union countries, including France, Germany, and Italy, will contribute a combined $19.4 billion. Canada, Japan, and the U.K. will supply the remaining portion, with London contributing $2.8 billion.

This agreement follows a landmark 100-year partnership deal signed between Zelenskyy and Starmer on January 16 in Kyiv. The wide-ranging accord includes cooperation in military, energy, scientific, cultural, and economic sectors, reinforcing long-term U.K.-Ukraine relations.

By Khagan Isayev