UK to give Ukraine £2.26bn loan to help fight Russia’s invasion – but Kyiv won’t have to repay a penny
The loan will be covered by profits made from Russian sovereign assets that Western nations have frozen since the start of the full-scale war – with the UK defence secretary saying the money “can help turn the tables on Putin’s war machine”.
The UK will give Ukraine a £2.26bn loan to buy weapons and other support to fight Russia’s invasion, with the money effectively repaid to the British taxpayer by Moscow.
Rachel Reeves, the chancellor, and John Healey, the defence secretary, have fleshed out the British contribution to a pledge made in June by the G7 group of advanced economies to lend Kyiv a total of $50bn (£38.5bn) for its military, budget and reconstruction needs.
Rather than expect Ukraine to pay a penny back, the entire loan – once finalised – will instead be covered by the profits made from hundreds of billions of dollars’ worth of Russian sovereign assets that Western nations have frozen since the start of the full-scale war in February 2022.
This mechanism is seen as a way to force Vladimir Putin to start paying for the damage his invasion has inflicted on Ukraine – but one that has a lower risk of legal challenge than simply giving the frozen Russian assets directly to the Ukrainian government.
h/t A Deplorable Neanderthal