The UK has made a second £752 million payment to Ukraine under the Extraordinary Revenue Acceleration Loans for Ukraine scheme. This funding will help Ukraine purchase critical military
equipment, including urgently needed air defence systems, as Russia continues its aerial attacks—most recently hitting the city of Sumy.
This loan is part of a wider £2.26 billion package agreed on 1 March between UK Chancellor Rachel Reeves and Ukrainian Finance Minister Serhii Marchenko. The funds are backed by profits from sanctioned Russian sovereign assets held in the EU.
Most of the support and maintenance work related to this equipment will be carried out in the UK, providing a boost to the domestic economy and supporting skilled jobs across the country.
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”.
This payment is the second of three instalments, with the first made on 6 March and the final due in 2026. The total UK contribution supports a broader G7 commitment to provide $50 billion to Ukraine.
Just last week, the UK announced an additional £450 million in military aid, which includes £350 million from this year’s overall defence budget. Norway is also contributing through the UK-led International Fund for Ukraine.
Beyond financial support, the UK Ministry of Defence is working closely with Ukraine to help procure vital battlefield equipment. A new “close fight” aid package—worth over £250 million and funded by the UK and Norway—will include radar systems, anti-tank mines, and hundreds of thousands of drones.
This effort aligns with the UK government’s Plan for Change, which will raise defence spending to 2.5% of GDP by 2027. The UK’s defence sector plays a major role in the economy, supporting 430,000 skilled jobs across the country, with 68% of spending directed outside London and the South East. Photo by President.gov.ua, Wikimedia commons.