UK offers $2.9 billion in G7 aid to Ukraine via Investing.com

The United Kingdom has pledged a £2.26 billion ($2.94 billion) loan to Ukraine to support its military efforts and infrastructure reconstruction amid the ongoing conflict. The contribution is part of a broader G7 effort to use frozen Russian central bank assets to cobble together a substantial loan package for Ukraine.

Defense Minister John Healy confirmed that the UK’s funding was aimed at military use, including the development of advanced drones capable of outrunning some long-range missiles. Details of how the funds will be used were discussed by Ukrainian President Volodymyr Zelensky and Prime Minister Keir Starmer in London two weeks ago, as well as at a recent meeting of G7 defense ministers in Italy.

Healy responded to questions about Ukraine’s potential acquisition of British Storm Shadow missiles, noting Ukraine’s significant investment in long-range drone technology. He emphasized cooperation with the United Kingdom in allocating loans for arms, which Ukraine considers vital.

In June, the G7 announced its commitment to a $50 billion loan to help Ukraine, with about $300 billion of Russian sovereign assets, currently built in Western countries, intended to pay off the debt. These assets were frozen following Russia’s large-scale invasion of Ukraine in February 2022. Russia has warned of retaliation against using its frozen assets in favor of Ukraine, which it considers illegal.

The rush to end discussions on the G7 debt is due in part to concerns that US support for Ukraine will wane if Republican presidential candidate Donald Trump wins the next election in November. The European Union has already agreed to pay 35 billion euros ($38 billion) as part of its debt.

The UK loan is in addition to the 12.8 billion pounds ($16.61 billion) it has already given to Ukraine. According to Finance Minister Rachel Reeves, the loan will be disbursed in separate installments.

At the time of reporting the exchange rates were 1 to 0.7678 pounds and 1 dollar to 0.9223 euros.

Reuters contributed to this article.

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