UK sends Kiev second batch of $3bln war loan

By Al Mayadeen English
Source: Agencies
14 Apr 2025 22:48
1 Shares

Part of a wider $50 billion G7-backed loan initiative, the package is underwritten by frozen Russian assets.

Listen

Britain's Chancellor of the Exchequer Rachel Reeves speaks during a press conference in the Downing Street Briefing Room in Downing Street, London, England, on Wednesday, March 26, 2025. (AP)

The United Kingdom has transferred £752 million (roughly $990 million) to Ukraine to fund the purchase of air defenses and artillery, part of a larger $50 billion global loan initiative underwritten by frozen Russian assets, according to a government announcement on Monday.

"The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine," said UK Finance Minister Rachel Reeves. The loan is Britain’s second installment of a three-part £2.26 billion package, with the first payment made on March 6 and the final tranche expected next year.

The broader funding framework was agreed upon by the G7 nations in October 2024—prior to the election of US President Donald Trump, whose administration has since taken a more cautious stance toward involvement in the conflict. Reeves and her Ukrainian counterpart, Serhiy Marchenko, finalized the UK's contribution in March.

UK pledges £450mln in new military aid to Ukraine ahead of key summit

Last week, the British government pledged £450 million in military aid to Ukraine, as the UK and Germany prepared to co-host a meeting of 50 allied nations in Brussels.

UK Defense Secretary John Healey said defense leaders are gathering to intensify pressure on Russian President Vladimir Putin in a bid to end the war in Ukraine. "We must step up to deter Russian aggression by continuing to bolster Ukraine's defences," he added.

Breakdown of last week's aid package

The aid package includes funding for hundreds of thousands of drones, anti-tank mines, and maintenance for previously supplied military vehicles. Around £350 million will be directly provided by the UK, with the remainder coming from Norway via the UK-led International Fund for Ukraine.

Of the total, £160 million is allocated for the repair and maintenance of UK-supplied military vehicles and equipment. Another portion, worth over £250 million, will support close-combat needs, including radar systems, drones, and anti-tank mines.

"We cannot jeopardise peace by forgetting the war, which is why today's major package will surge support to Ukraine's frontline fight," Healey pointed out, stressing that "2025 is the critical year for Ukraine."

The commitment builds on a series of military pledges from the UK. Last month, Prime Minister Keir Starmer announced a £1.6 billion missile deal during a summit of European leaders in London, in addition to a £2.2 billion loan backed by frozen Russian assets to fund further military support.

The Liberal Democrats criticized Friday’s announcement as a "small change", urging the government to seize Russian assets in the UK to boost Ukraine’s funding.

Defense spokesperson Helen Maguire stated, "While we welcome any increase in support for Ukraine, this package is small change compared to what's needed to combat Putin's barbaric war."

Healey and German Defense Minister Boris Pistorius are co-chairing the Ukraine Defense Contact Group meeting on Friday. The group, previously led by the US Secretary of Defense, came under UK leadership after Donald Trump became president in January, marking a shift in Washington’s role in European security.

This meeting follows a recent Franco-British-led summit involving defense ministers from 30 countries, where discussions included the possibility of deploying a future force in Ukraine to ensure lasting peace.

While Healey ruled out a "reassurance force" that would physically separate the warring sides along the contact line, he emphasized that strengthening Ukraine’s military capabilities remains central to any plan.