The first tranche of the £2.26 billion loan (approximately $3 billion) under the UK-Ukraine bilateral agreement signed on Saturday, March 1, will be disbursed to Ukraine next week.
According to Ukrinform, this was reported on the UK government’s website.
“The loan will be fully earmarked for military procurement to bolster Ukraine’s defences, with the first tranche of funding expected to be disbursed to Ukraine next week,” the statement reads.
It is noted that the total funding will be delivered in three equal annual payments of £752 million.
Additionally, the loan agreement announcement comes on top of the UK’s commitment to providing £3 billion in annual military aid for Ukraine.
“A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war,” said UK Chancellor of the Exchequer Rachel Reeves.
As Ukrinform previously reported, on March 1, Ukraine and the United Kingdom signed an emergency loan agreement worth GBP 2.26 billion (approximately $3 billion) to fund the procurement of defense materials. These funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA), a G7-led mechanism with a total funding pool of $50 billion.
The loan will be paid back using profits generated on sanctioned Russian sovereign assets.
Source: First tranche of UK loan to be disbursed to Ukraine next week
