UK to fund Ukraine with £2.26bn from seized Russian assets
The British government will transfer £2.26 billion from frozen Russian assets to Kyiv, reports the BBC. Defence Minister John Healey emphasises that this move aims to "turn the revenues of Putin's corrupt regime against him".
The BBC notes that the £2.26 billion for Ukraine represents the British contribution to the G7 fund, which seeks to raise £38 billion for Kyiv. The funds are intended to help Ukraine defend itself against the Russian invasion.
Chancellor of the Exchequer Rachel Reeves has announced that the money will reach Ukraine as swiftly as possible. "The funds will be provided in the form of a loan, and the UK will recover the costs from the profits of seized Russian assets," reads the statement.
The Chancellor adds that this is not about confiscating sovereign Russian assets in Europe, but rather about utilising profits and interest. According to the BBC, other G7 countries are expected to make similar financial decisions in the coming weeks.
Ukraine will decide for itself
The several billion pounds in question will not reach Kyiv immediately, but in instalments. According to the BBC, some G7 countries anticipate that not all funds will be used for military actions; there is also discussion about rebuilding the country.
It is expected that payments to Ukraine will be made in instalments, rather than in a lump sum. Some countries are advocating for portions of the money to be allocated towards rebuilding Ukraine. However, the British emphasise that the ultimate decision on expenditure remains with Kyiv, though Defence Secretary Healey notes the acquisition of ammunition and strengthening of air defence as priorities.
This latest tranche will be in addition to the already pledged £3 billion. To date, the UK has provided Ukraine with £12 billion for military expenses.
