The UK government has announced it will provide an additional £2.26bn ($2.93bn) to Ukraine, made possible by using the profits from seized Russian assets in Europe. The money will be issued as a loan, with the UK recouping the cost from the profit of seized Russian assets. Defence Secretary John Healey said the funding will allow Ukraine to enhance its frontline military equipment, such as air defences and ammunition. The announcement follows the launch of a £38bn ($50bn) fund by the G7 group of leading global economies in June of last year.
Speaking about the contribution, Chancellor Rachel Reeves said that the UK is not confiscating sovereign Russian assets in Europe, but rather using the profits and interest accrued from them. The payments to Ukraine are expected to be issued in tranches, rather than in a single lump sum, with some of the funds expected to be utilised for Ukraine’s reconstruction. However, the UK government has confirmed that it is up to Kyiv to decide how it wants to spend the UK’s contribution.
This £2.26bn payment, made within the appropriate legal framework, is a one-off, separate from the £3bn already promised by the government to support Ukraine’s war effort. The government has already provided more than £12bn in military aid and has committed to matching its level of support in the future. Healey explained that the money will help Ukraine purchase urgently needed military equipment, including air defences and ammunition.
The Chancellor and Defence Secretary held a joint briefing for reporters to discuss the announcement, with Reeves noting that the UK’s contribution reflects the country’s unwavering support for Ukraine. The announcement also comes ahead of next week’s budget, during which the government is expected to reveal its spending plans on public services such as health, schools, and police. While Reeves declined to discuss specifics on the forthcoming budget, she reiterated the government’s commitment to spending 2.5% of GDP on defence, albeit without a specified timetable
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