Britain is set to provide Ukraine with a loan of £2.26 billion ($2.94 billion) as part of a broader G7 initiative, utilizing frozen Russian central bank assets to help Ukraine purchase military

equipment and rebuild its infrastructure.

This loan is part of a larger G7 package aimed at supporting Ukraine, backed by approximately $300 billion in immobilized Russian assets. The G7’s total loan commitment, announced in June, amounts to $50 billion, intended to aid Ukraine’s recovery following the Russian invasion that began in February 2022. Russia has condemned the move, labeling it illegal and threatening retaliation.

British Defense Minister John Healey clarified that the loan from Britain will be used exclusively for Ukraine's military needs. It may help fund the development of advanced drones with extended range, surpassing some long-range missiles. The use of the British loan was a key topic during discussions between Ukrainian President Volodymyr Zelenskiy and British Prime Minister Keir Starmer in London, as well as among G7 defense ministers in Italy.

When asked if Ukraine could use the funds to purchase British-made Storm Shadow missiles, Healey responded that Ukraine is focused on developing longer-range drones. The country will coordinate with Britain on how best to use the funds and which weapons are most critical.

As Western nations expedite funding efforts to Ukraine, concerns grow over potential shifts in U.S. policy if Republican candidate Donald Trump wins the upcoming presidential election, potentially reducing American support.

The European Union, which holds the majority of the frozen Russian assets, has already committed €35 billion ($38 billion) to Ukraine as part of its contribution. Britain’s latest loan comes in addition to the £12.8 billion ($16.61 billion) it has already pledged to support Ukraine.

British Finance Minister Rachel Reeves stated that the loan will be distributed in stages to ensure continuous support. Photo by Ministry of Defense of Ukraine, Wikimedia commons.