A £752 million payment has today (14 April) been sent to Ukraine through the Extraordinary Revenue Acceleration Loans for Ukraine scheme. The funding will support Ukraine to procure vital military equipment, including urgently needed air defence. This comes as Russia continues its air assault on Ukraine, striking the city of Sumy.
The loan, which will be paid for through the profits of sanctioned Russian sovereign assets in the EU, forms part of a wider £2.26 billion loan agreed between the Chancellor and Minister Marchenko on 1 March.
The payment highlights the UK’s steadfast support to Ukraine whilst building on the Chancellor’s Spring Statement pledge to go further and faster to protect our national security and maximise the economic growth potential of the UK defence sector. The equipment support and maintenance elements will be mainly spent in the UK, boosting the UK economy and skilled jobs.
Rachel Reeves, Chancellor of the Exchequer said:
The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine.
A strong Ukraine is vital to UK national security and this second tranche of funding will help put them in the strongest possible position, and contribute towards our collective security.
Defence Secretary, John Healey MP 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.
Today’s payment forms the second part of the UK’s £2.26 billion loan, which has been spaced into three separate tranches to give Ukraine more flexibility and allow them to swiftly adapt to the ever-changing battlefield. The first payment was made on 6 March, with the final payment to follow in 2026.
The multi-billion payment forms part of the UK’s contribution to the Extraordinary Revenue Acceleration Loans for Ukraine scheme, which is a G7 commitment to collectively support Ukraine through a total of $50 billion.
It follows a £450 million surge in military support that was announced by the UK last week, which includes £350 million from this year’s record £4.5 billion military support funding for Ukraine. Further funding is being provided by Norway, via the UK-led International Fund for Ukraine.
In addition to providing financial support, the Ministry of Defence will also support Ukraine to procure the equipment needed to fight Russia’s invasion. This will include a new ‘close fight’ military aid package – with funding for radar systems, anti-tank mines and hundreds of thousands of drones – worth more than £250 million, using funding from the UK and Norway.
The government’s Plan for Change will see UK defence spending increased to 2.5% of GDP by 2027. The UK’s world-leading defence sector is vital to the economy, supporting 430,000 high-skilled, high-paid jobs across the UK and strengthening our security. 68% of defence spending is outside of London and the South East, benefitting every nation and region of the UK.
