UK Agrees £2.26 Billion Loan To Ukraine
Starmer and Zelensky met at Downing Street on Friday night
3 min read
The UK announced a new loan of £2.6bn for Ukraine on Saturday linked to frozen Russian assets.
The minister of finance of Ukraine Sergeii Marchenko said that the agreement was "another significant step in strengthening Ukraine’s defence capabilities".
The Ukranian finance minister joined Chancellor Rachel Reeves and Prime Minister Keir Starmer via video call in Downing Street on Saturday evening as Reeves signed papers to approve the £2.26bn in loans to support Ukraine to "bolster military capability".
Marchenko said he was grateful to Britain for "holding the aggressor accountable for the war".
He said the funds were “ensured by frozen Russian assets.” The first tranche of funding is expected to reach Ukraine later next week.
The Treasury said the loan will be paid back using profits generated on sanctioned Russian sovereign assets. The funding will be delivered in three equal annual payments of £752m.
It comes after MPs from cross-party groups today called for the immediate seizing of frozen Russian assets to support Ukraine, following the further breakdown in US-Ukraine relations.
The all-party parliamentary groups on Ukraine, Anti-Corruption and Responsible Tax, Magnitsky Sanctions and Reparation as well as the UK Friends of Ukraine and Advocacy4Ukraine called for the seizing of $300bn of frozen Russian state assets held in Europe to support Ukraine.
Starmer is set to host a defence summit with European leaders in London on Sunday, where Zelensky will be in attendance. Zelensky is also set to meet with King Charles.
On Friday, Zelensky and US president Donald Trump clashed at a meeting in Washington DC over the future of peace negotiations with Russia.
During a meeting in the Oval Office with the Ukrainian president, Trump accused Zelensky of “gambling with World War Three” as a proposed minerals deal expected to play a key part in a peace deal with Russia fell through.
The meeting has sparked fears that ground made during a meeting between Starmer and Trump on Thursday has been lost.
In contrast, Starmer's meeting with Trump just 24 hours previously was widely seen as a success, with the US president announcing there was a "very good chance" that the US and UK would agree to a trade deal that removes tariffs between the two countries.
Starmer embraced Zelensky outside No10 Downing Street this afternoon. Ahead of discussions, the Prime Minister told Zelensky that he had the full backing of the UK and "we stand with you and Ukraine for as long as it may take".
The UK Prime Minister told Zelensky he was determined to deliver on "what we both want to achieve, which is... a lasting peace for Ukraine based on sovereignty and security".
Speaking as the UK and Ukraine signed the loan deal today, Chancellor of the Exchequer Rachel Reeves said: “A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.
“It comes as we have increased our defence spending to 2.5 per cent of GDP, which will deliver the stability required to keep us safe and underpin economic growth.”
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