London: The UK government announced a 2.26 billion pound loan to Ukraine to bolster its defense capabilities, on the sidelines of British Prime Minister Keir Starmer's meeting with Ukrainian President Volodymyr Zelenskyy in London.
According to Qatar News Agency, British Chancellor Rachel Reeves and Ukrainian Finance Minister Sergii Marchenko signed the formal loan agreement, with the first tranche of funding expected to reach Kyiv later next week. The loan will be repaid using profits generated on sanctioned Russian sovereign assets.
Announcing the package of support, Reeves stated that a "safe and secure Ukraine is a safe and secure United Kingdom." The funding aims to strengthen Ukraine's armed forces at a critical juncture in the ongoing conflict. The financial support will be delivered in three equal annual payments of 752 million pounds, supplementing the UK's existing commitment of 3 billion pounds a year in military aid for Ukraine.
This financial package follows Prime Minister Starmer's recent announcement to increase the UK's defense spending to 2.5% of GDP by 2027, up from the current 2.3%.