The UK will allocate $3 billion from the proceeds of frozen Russian assets to arms for Ukraine

Ukraine has signed a project agreement with the United Kingdom to receive $3 billion under the G7 ERA initiative. The money will come from windfall profits from frozen Russian assets.

This was announced by the Ministry of Defense of Ukraine on Tuesday, May 27.

According to the agreement, during 2025-2026, the funds will be used for:

• the purchase of foreign-made defense products;
• the repair and maintenance of military equipment;
• the implementation of joint projects involving Ukrainian and international defense companies;
• the purchase of other critically important materials, including Ukrainian-made products.

“Ukrainian enterprises have a capacity of $35 billion, but a shortage of funds prevents them from being fully utilized. Therefore, attracting windfall profits from frozen Russian assets will significantly strengthen the production and repair capabilities of the Ukrainian defense industry,” said Deputy Minister of Strategic Industries of Ukraine Davyd Aloyan.

The Extraordinary Revenue Acceleration (ERA) initiative is a joint program of the G7 countries. Its essence lies in using profits from frozen Russian assets to repay loans provided by the G7 countries to Ukraine. The total amount of the program is $50 billion, part of which will be used to meet defense needs.

Source: New Voice