The United Kingdom has announced a £2.26bn ($2.9bn) military loan to Ukraine as part of the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine initiative. The funding, part of a broader $50bn support package, aims to bolster Ukraine’s military, budgetary, and reconstruction efforts amid its ongoing war with Russia.

This loan, alongside contributions from other G7 members, will be repaid using profits from immobilised Russian sovereign assets, which have been frozen under international sanctions imposed in response to Russia’s invasion.

"By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine," said Defence Secretary John Healey. "This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression."

The UK government plans to introduce domestic legislation in the coming weeks to enable the swift transfer of these funds to Ukraine, addressing delays in clearing profits from frozen Russian investments. The move aligns with broader G7 efforts to hold Russia accountable for its war in Ukraine.

In addition to the loan, Healey recently confirmed that the UK will deliver 650 Lightweight Multirole Missile systems to help Ukraine defend against airborne threats, further underscoring Britain’s commitment to Ukraine’s military capabilities.

The UK’s latest financial pledge is part of a wider international effort to support Ukraine, with G7 partners also contributing to the $50bn fund intended to aid Ukraine's ongoing resistance and reconstruction.

Meanwhile, the European Parliament's Trade Committee has approved a proposal to provide Ukraine with a loan of up to €35bn as part of the G7 initiative to address Ukraine's urgent financial needs. The vote passed with 31 in favour and four against, with no abstentions.

The exceptional Macro-Financial Assistance (MFA) loan is the EU's contribution to the G7's broader $50bn (€45bn) support package. The loan will be financed through revenues generated from frozen Russian Central Bank assets, under a newly established Ukraine Loan Cooperation Mechanism.