UK to provide Ukraine with US$2.93 billion loan, repaid from proceeds from frozen Russian assets

The UK will provide Ukraine with a loan of £2.26 billion (about US$2.93 billion). The loan will be repaid from the proceeds from frozen Russian assets.

Source: website of the UK government

Details: The new £2.26 billion is the UK's contribution to the G7 loan programme for Ukraine, which will provide US$50 billion from the G7 countries for military, budgetary and reconstruction needs. 

The loan will be repaid from the proceeds of frozen Russian assets.

Quote: "The UK’s £2.26 billion loan is earmarked as budgetary support for Ukraine’s military spending, enabling the Ukrainians to invest in key equipment to support their efforts against Russia, such as air defence, artillery and wider equipment support. It comes on top of the UK’s existing £3 billion a year military aid for Ukraine, which the Prime Minister re-committed to within his first week in office."

More details: In total, the UK has sent about 400 pieces of various equipment to Ukraine, and UK Defence Secretary John Healey recently announced that the UK will provide Ukraine with 650 lightweight multi-role missile (LMM) systems to strengthen the country's air defence.

Background:

• In late September, UK Foreign Secretary David Lammy said that a decision on lifting restrictions on Ukraine's use of Western long-range weapons against military targets in Russia could be made by early winter.
• The Times noted that the US and the UK were supposedly preparing to grant Ukraine authorisation to use Storm Shadow missiles to strike Russian territory, but the announcement would not be made public in order to preserve the element of surprise for Russia. 

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