UK’s £2.26bn loan for Ukraine ‘can help turn the tables on Putin’s war machine’

Chancellor Rachel Reeves and Defence Secretary John Healey announced the move, which will be funded by profits on frozen Russian assets.

The UK has announced a £2.26 billion loan to help Ukraine fight Vladimir Putin’s forces, funded by profits on frozen Russian assets.

The money is the UK’s contribution to a 50 billion dollar (£38.39 billion) loan package agreed by the G7 group of nations financed through the interest on sanctioned Russian sovereign assets.

The money could be used to fund air defence, artillery or other military equipment and comes on top of the UK’s existing £3 billion-a-year support for Ukraine.

“This new money is in Britain’s national interest because the front line of our defence – the defence of our democracy and shared values – is in the Ukrainian trenches. A safe and secure Ukraine is a safe and secure United Kingdom.”

The G7 – the UK, US, Canada, Japan, France, Germany and Italy, along with the EU – agreed in June to the loan, using the interest from Russian state funds frozen as a result of sanctions.

Rachel Reeves operates a Max Evo drone as Defence Secretary John Healey looks on (Leon Neal/PA)

The UK Government will introduce new laws within weeks to enable the transfer of the new funds to Ukraine as quickly as possible.

Defence Secretary John Healey said: “By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine.

Russian invasion of Ukraine — The Cabinet ministers met soldiers and staff at the Stanford Training Area near Thetford (Leon Neal/PA)

“The UK is stepping up our support to Ukraine, speeding up supplies of vital equipment and boosting our defence industries. We will stand with Ukraine for as long as it takes.”