London to allocate $3 billion from Russian assets to support the Armed Forces of Ukraine

The United Kingdom will allocate surplus revenues from frozen Russian assets to armaments and equipment repairs for Ukraine.

According to the agreement, Ukraine will receive $3 billion between 2025 and 2026.

The funds will be used to purchase foreign-made defense products.

They will also be used to implement joint projects involving Ukrainian and international defense companies and to purchase other critical materials, including Ukrainian-made products.

“Ukrainian enterprises have a capacity of $35 billion, but a lack of funds prevents them from being used to their full potential,” Davyd Aloyan, Deputy Minister for Strategic Industries of Ukraine, shared.

Therefore, the use of excess profits from frozen Russian assets will significantly strengthen the production and repair capacities of the Ukrainian defense industry.

The funds are being transferred as part of the Extraordinary Revenue Acceleration (ERA) initiative, a loan program led by the G7 countries.

In total, the partners have pledged to provide Ukraine with approximately $50 billion.

These funds will be serviced and repaid from future revenues generated from frozen Russian sovereign assets held in the European Union and other jurisdictions.

According to the Ministry of Finance, approximately $280 billion in frozen Russian sovereign assets remain in G7 jurisdictions.

The G7 countries have pledged to keep them frozen until Russia pays for the crimes committed against Ukraine.