The UK has completed a second payment of £752m ($997.70m) to Ukraine under the Extraordinary Revenue Acceleration Loans for Ukraine scheme, designed to assist in the procurement of military equipment.
This financial support is directed towards strengthening Ukraine’s air defence systems in light of the persistent aerial attacks by Russia, including recent strikes on the city of Sumy.
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The funds are part of the G7’s Extraordinary Revenue Acceleration initiative, which redirects revenues from frozen Russian assets to aid Ukraine.
On 1 March, Ukraine Finance Minister Sergii Marchenko and UK Chancellor of the Exchequer Rachel Reeves formalised an agreement to provide Ukraine with a total sum of £2.26bn to bolster its defence capabilities.
The initial tranche, which was also £752m, was disbursed in March, and the final instalment is scheduled for 2026.
With the latest payment, Ukraine’s total received funds under this agreement amount to £1.5bn.
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By GlobalDataThe loan terms span 30 years and are set to be serviced and repaid through future revenues from immobilised Russian sovereign assets.
UK Defence Secretary John Healey said: “2025 is the critical year for Ukraine and this is the critical moment. This is the moment for our defence industries to step up, and they are; a moment for our militaries to step up, and they are; a moment for our Governments to step up, and we are.
“This new tranche of funds is part of our £4.5 billion of military support this year – more than ever before – and will be used to buy urgently needed air defence, artillery, and parts to help repair vehicles and equipment to get them back into the fight. We are stepping up support for Ukraine to deter Russian aggression and bolster Britain’s national security as the foundation of our Plan for Change.”
This financial aid follows a recent £450m increase in military support from the UK, which includes £350m from this year’s unprecedented £4.5bn military support fund for Ukraine.
Additional contributions are coming from Norway through the UK-led International Fund for Ukraine.
Beyond financial assistance, the UK’s Ministry of Defence is committed to helping Ukraine acquire the necessary equipment to counter Russia’s invasion.
This includes a new ‘close fight’ military aid package valued at more than £250m, funded by both the UK and Norway, which will provide radar systems, anti-tank mines, and hundreds of thousands of drones.
