Ukraine secures a £2.6 billion defense loan from the UK under ERA program
Ukraine's Finance Ministry has announced a monumental financial boost, as part of the Extraordinary Revenue Acceleration (ERA) initiative, designed to be serviced and repaid using profits from frozen Russian assets. This strategic move follows the signing of an Agreement for an emergency loan to Ukraine, amounting to a staggering £2.6 billion (approximately $3.2 billion), aimed at bolstering the nation’s defense capabilities.
The online agreement saw UK Chancellor of the Exchequer, Rachel Reeves, putting pen to paper alongside Ukrainian Finance Minister Sergiy Marchenko. This pivotal event was also attended by UK Prime Minister Keir Starmer and Ukraine’s President Volodymyr Zelensky.
As per the deal's ambit, the funds provided form part of the ERA program, which offers 30-year financing to Ukraine. Marchenko expressed deep gratitude, noting, "The UK remains steadfast in defending Ukraine. Today’s agreement, which aids Ukraine's defense fortitude, affirms this stance. I extend heartfelt thanks to the UK Government and especially to Rachel Reeves for her instrumental efforts in realizing this agreement."
Ukraine's Ministry of Finance further emphasized that assistance under the ERA initiative has already seen funds flowing, with $1 billion from the U.S. and €3 billion from the EU previously received.
In a day characterized by high-level diplomacy, President Zelensky engaged in discussions with both UK Prime Minister Keir Starmer and King Charles III. The Ukrainian leader’s visit to London included a stop at 10 Downing Street for talks, offering an important diplomatic window amid ongoing geopolitical tensions.