Ukraine and the United Kingdom have signed a loan agreement to enhance defense capabilities.

Ukraine and Britain have signed a loan agreement worth £2.6 billion ($3.2 billion) for defense purposes. The funds will be utilized to finance the procurement of defense materials based on the needs of the Ukrainian side.

This was reported by the press service of the Ministry of Finance of Ukraine.

Joining the signing ceremony were UK Chancellor of the Exchequer Rachel Reeves and Ukrainian Finance Minister Serhiy Marchenko. They signed an agreement to expedite funding to Ukraine, under which Britain will provide resources to support the country's defense capabilities. The event was also attended by UK Prime Minister Keir Starmer and President of Ukraine Volodymyr Zelensky.

The Ministry clarified that these funds are part of the G7 countries' program amounting to $50 billion in total assistance. This refers to the Extraordinary Revenue Acceleration for Ukraine (ERA) program.

Note. Extraordinary Revenue Acceleration for Ukraine (ERA) is a program through which Ukraine receives financing for a term of 30 years. The servicing and repayment of the loans will be carried out using frozen Russian assets. Within the ERA mechanism of the G7 countries, Ukraine has already received $1 billion from the United States and €3 billion from the EU.

Background. Earlier, Mind reported that the IMF will continue cooperation with Ukraine – Kyiv is expecting a payment of €5.4 billion. This IMF program is part of an international support package for 2023-2027 amounting to over €142 billion.