The United Kingdom and Ukraine unveiled a landmark £2.26 billion ($2.84 billion) loan agreement aimed at bolstering Ukraine’s defence capabilities.
The agreement, announced on Saturday, is structured to be repaid using profits from immobilised Russian sovereign assets, as reported by AFP. During a virtual ceremony, finance ministers of the two nations, Rachel Reeves and Sergii Marchenko finalised the loan agreement whilst Prime Minister Keir Starmer held discussions with President Volodymyr Zelenskyy in London.
Zelenskyy, who was welcomed warmly by Starmer at Downing Street, described the deal as “true justice. The one who started the war must be the one to pay.”
The loan is said to primarily fund weapons production within Ukraine, a move that aligns with Kyiv’s broader efforts to enhance its domestic arms industry while sustaining its military resistance against Russian forces.
Starmer reaffirmed the UK’s unwavering support for Ukraine, emphasizing the importance of European solidarity in ensuring security across the continent. “In partnership with our allies, we must intensify our preparations for the European element of security guarantees alongside continued discussions with the United States,” he said.
The loan agreement comes at a pivotal moment, just ahead of an emergency summit in London where European and Canadian leaders will discuss strategies to sustain Ukraine’s war effort and broader European security. Attendees will include Canadian Prime Minister Justin Trudeau and Italian Prime Minister Giorgia Meloni, with discussions expected to focus on Europe’s need to enhance defence cooperation independently of the United States.
The deal follows a turbulent diplomatic blowout in Washington, where Zelenskyy and US President Donald Trump engaged in a heated exchange over Ukraine’s willingness to negotiate peace. Additionally, Trump’s new stance—seeking direct dialogue with Russian President Vladimir Putin while pressuring Ukraine to accept a truce—has sparked anxiety among European allies.
Nevertheless, Zelenskyy stressed the importance of securing US support, stating, “It’s crucial for us to have President Trump’s backing. He wants to end the war, but no one wants peace more than we do.”