Ukraine receives $1 billion UK tranche from immobilised Russian assets

Ukraine has received the final tranche of £752 million (about $1 billion) from the United Kingdom under the G7 Extraordinary Revenue Acceleration (ERA) for Ukraine initiative, according to officials.

The funds will be used to strengthen Ukraine’s defence capabilities amid its ongoing conflict with Russia, Caliber.Az reports per Ukraine's Finance Ministry. 

“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,” said Ukraine’s Finance Minister Sergii Marchenko.

Under the arrangement, Ukraine is set to receive a total of £2.26 billion (around $3 billion) in defence financing following an agreement signed on 1 March 2025 between Marchenko and UK Chancellor of the Exchequer Rachel Reeves.

The first two tranches, amounting to £1.5 billion, were disbursed in March and April 2025.

The funding is part of the broader G7 ERA mechanism, which has a total volume of $50 billion. The loans are to be serviced and repaid using future profits generated from immobilised Russian sovereign assets, with a repayment period of 30 years.

By Sabina Mammadli