UK grants Ukraine £2 Billion loan for for defence modernization and weapons procurement
The United Kingdom has extended a loan of £2 billion to Ukraine for purchasing military supplies. The loan, set over a period of 15 years, will be supervised by a special commission to ensure proper allocation of funds.
Ukraine and the UK signed the loan agreement, which will finance Ukraine's defence needs. Under this agreement, British suppliers can enter into credit agreements and contracts with Ukraine, according to the Office of the President of Ukraine.
The framework agreement, signed by Ukrainian Defence Minister Rustem Umerov and his UK counterpart John Healey, is designed to provide financial support for acquiring modern weapons, military equipment, and other defence capabilities in line with NATO standards.
According to the Ukrainian side, the deal will enable Ukraine to enhance its air defence systems and access radar and strike technologies, while also supporting the partial production of artillery barrels, spare parts, and components for Western-model armoured vehicles.
The loan comes with an attractive interest rate and the possibility of extension and increase in the loan amount. A joint commission comprising representatives from both governments will monitor the utilisation of the funds.
Rustem Umerov highlighted that the agreement would ease the burden on the national budget and enable Ukraine to acquire the necessary armaments in the short term.
However, UK's Defence Minister John Healey clarified that while the UK will support Ukraine, it will not assist in striking targets within Russia. He stressed that it is up to Ukraine to decide how best to defend itself.