Ukraine has received the first tranche of 752 million pounds ($970 million) from Britain. The funds are secured by proceeds from frozen Russian assets.
Points of attention
- Ukraine received $970 million financial assistance from Britain under the G7 ERA initiative, secured by frozen Russian assets.
- The funds will be used to strengthen Ukraine's defense capabilities, as part of a larger program aimed at receiving $50 billion from G7 countries.
- The mechanism behind the funding involves using proceeds from frozen Russian assets, with the possibility of directing funds directly to defense needs.
Ukraine received new aid from Britain
Prime Minister Denys Shmyhal announced this on March 7.
Today we received £752 million under the G7 ERA initiative. The funds will be used to strengthen Ukraine's defense capabilities.
Denys Shmyhal
Prime Minister of Ukraine
Shmyhal thanked the British government and other G7 partners for the mechanism that forces Russian funds to work for Ukraine.
We expect that all sovereign assets of the Russian Federation will be confiscated and transferred to the benefit of our state in the future.
As a reminder, on March 1, Finance Minister Serhiy Marchenko and British Chancellor of the Exchequer Rachel Reeves signed an agreement on Ukraine receiving 2.26 billion pounds sterling (over 2.8 billion dollars) for defense. It is allocated within the framework of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative for defense needs.
Ukraine has already started receiving funds under the ERA program. This is a mechanism that provides for receiving $50 billion from the G7 countries with subsequent repayment from the proceeds from the use of frozen Russian assets.
It is planned to receive $20 billion from the USA, $20 billion from the EU, $3 billion from the UK, $3.7 billion from Canada, and $3 billion from Japan.
A feature of the program is the possibility of directing part of these funds (from the EU and the UK) directly to defense needs.
