Ukraine receives first tranche from UK, backed by frozen Russian assets

Ukraine has received the first disbursement of funds from the United Kingdom as part of the G7 loan, utilizing proceeds from frozen Russian assets. Ukrainian Prime Minister Denys Shmyhal announced.

Shmyhal confirmed that Ukraine had received a tranche of £752 million from the UK, Caliber.Az reports citing Ukrainian media.

In his statement, Shmyhal expressed his gratitude to UK Prime Minister Keir Starmer, the UK government, and other G7 partners for facilitating this financial mechanism, which allows frozen Russian assets to be used for Ukraine's benefit.

"The funds will go towards strengthening Ukraine's defence capabilities. I am grateful to [UK Prime Minister] Keir Starmer, the UK Government and our G7 partners for the mechanism to make Russian money work for Ukraine. We expect all sovereign assets of the Russian Federation to be confiscated and transferred to benefit our country in the future," he noted.

In 2024, the G7 agreed to collectively provide Ukraine with a US$50 billion loan, which will be financed using proceeds from assets frozen as a result of Russia's ongoing invasion of Ukraine. While the funds are being provided as a loan, they will be repaid through the proceeds from these frozen assets.

This loan is separate from the EU’s Ukraine Facility, which began on 1 March 2024. The EU program allocates up to €50 billion in grants and loans to support Ukraine’s recovery, rebuilding, and modernisation efforts between 2024 and 2027.

By Vafa Guliyeva