The United Kingdom agreed to provide Ukraine with a £2.26 billion loan. This deal is part of the Group of Seven’s (G7) Extraordinary Revenue Acceleration (ERA) credit initiative. Ukrainian President Volodymyr Zelenskyy signed the agreement in London on Saturday. Notably, this came just a day after his heated exchange with US President Donald Trump at the White House.
Meanwhile, UK Prime Minister Keir Starmer gave Zelenskyy a warm welcome and reaffirmed his support. Expressing gratitude, Ukraine’s Finance Minister Serhii Marchenko stated, “The United Kingdom continues to stand in defence of Ukraine. Today’s agreement, which contributes to strengthening Ukraine’s defence capabilities, confirms this.” Furthermore, he clarified that Ukraine would use the loan to purchase defence equipment.
US Leads G7’s Loan Contribution
Previously, in October 2024, the G7 nations pledged a $50 billion loan to Ukraine. At that time, the US emerged as the largest contributor, committing $20 billion. In comparison, EU countries, including France, Germany, and Italy, followed closely with a combined $19.4 billion. Additionally, Canada contributed $3.7 billion, Japan $3.07 billion, and the UK $2.8 billion.
Despite these commitments, Ukraine has received only a small portion of the promised funds. To address this, the G7 nations plan to finance the loan using frozen Russian assets.
Limited Access to Frozen Russian Assets
Since the war began, Western countries have frozen $300 billion in Russian assets. However, they can only access the annual interest, which amounts to approximately $3.2 billion. Notably, most of these assets remain frozen in Europe.
UK Strengthens Support for Ukraine
After his dispute with Trump and US Vice President JD Vance, Zelenskyy received a warm reception in the UK. In fact, King Charles announced a meeting with him at Sandringham.
Upon arrival, Zelenskyy expressed appreciation and told Starmer that Ukraine was fortunate to have “such friends.” In response, Starmer confirmed that the UK would host a European summit on Sunday. Leaders will discuss strategies to end the Russia-Ukraine war and strengthen European defence.
Moreover, Starmer has recently positioned himself as a mediator between the US and Europe. During his visit to Washington, he personally delivered a letter from King Charles. The letter invited Trump for a rare second state visit.
Without a doubt, the UK remains one of Ukraine’s strongest allies. Earlier in January, Starmer and Zelenskyy signed a historic 100-year partnership in Kyiv. This agreement covers military, energy, science, culture, and economic cooperation. Ultimately, the UK continues to play a crucial role in Ukraine’s future.