UK Plans to Equip Ukraine Using Funds from Russia
The UK government, through Chancellor of the Exchequer Rachel Reeves, has announced a loan of £2.26 billion to assist Ukraine in its ongoing conflict with Russia. Read Full Article at RT.com.
TroibNews 
London intends to extend a loan of approximately $3 billion to Kiev, which will be repaid through the interest accrued from frozen Russian assets. The announcement was made by Chancellor of the Exchequer Rachel Reeves, who outlined that the UK will provide £2.26 billion to support Ukraine's ongoing war efforts against Russia.
This development occurs just before a meeting of G7 finance ministers during the International Monetary Fund and World Bank discussions in Washington this week. “This new funding is in Britain’s national interest because the frontline of our defense – the defense of our democracy and shared values – is in the Ukrainian trenches,” Reeves remarked on Monday.
In June, G7 nations agreed to a major $50 billion loan for Ukraine, which is to be financed through the unexpected profits generated from Russian funds. The initial plan involved contributions of $20 billion each from the US and the EU, while the remaining amount would be covered by the UK, Canada, and Japan. Recently, the EU approved up to €35 billion for the G7 loan but could provide a lesser amount if the US fulfills its $20 billion commitment, according to a Reuters report.
Kiev's allies are working to expedite negotiations for this loan to ensure funding is secured before the year’s end, particularly in light of worries that Donald Trump may reduce US support for Ukraine if he reclaims the presidency, as reported by the Financial Times. The Republican presidential candidate has expressed doubt about continuing financial aid to Ukraine.
The repayment for the loan will stem from profits generated by an estimated €300 billion in Russian assets that have been frozen in Western financial institutions since the conflict began in 2022, which Moscow has labeled as “theft.” A significant portion, nearly €197 billion, is held by the Belgian clearinghouse Euroclear. According to the financial institution, these assets produced €3.4 billion in interest during the first half of 2024.
Despite pressure from the United States, the IMF has so far resisted moves to completely confiscate frozen Russian assets, fearing that it could shake confidence in the Western financial system. “What we’re not doing is confiscating these assets to fund this loan,” Reeves clarified on Monday. “We’re utilizing the extraordinary profits from the assets, and that’s how we’re confident we can do this within the appropriate legal frameworks.”
Moscow has continuously emphasized that the "theft" of its sovereign assets threatens global faith in the entire Western financial system.
James del Carmen contributed to this report for TROIB News
This development occurs just before a meeting of G7 finance ministers during the International Monetary Fund and World Bank discussions in Washington this week. “This new funding is in Britain’s national interest because the frontline of our defense – the defense of our democracy and shared values – is in the Ukrainian trenches,” Reeves remarked on Monday.
In June, G7 nations agreed to a major $50 billion loan for Ukraine, which is to be financed through the unexpected profits generated from Russian funds. The initial plan involved contributions of $20 billion each from the US and the EU, while the remaining amount would be covered by the UK, Canada, and Japan. Recently, the EU approved up to €35 billion for the G7 loan but could provide a lesser amount if the US fulfills its $20 billion commitment, according to a Reuters report.
Kiev's allies are working to expedite negotiations for this loan to ensure funding is secured before the year’s end, particularly in light of worries that Donald Trump may reduce US support for Ukraine if he reclaims the presidency, as reported by the Financial Times. The Republican presidential candidate has expressed doubt about continuing financial aid to Ukraine.
The repayment for the loan will stem from profits generated by an estimated €300 billion in Russian assets that have been frozen in Western financial institutions since the conflict began in 2022, which Moscow has labeled as “theft.” A significant portion, nearly €197 billion, is held by the Belgian clearinghouse Euroclear. According to the financial institution, these assets produced €3.4 billion in interest during the first half of 2024.
Despite pressure from the United States, the IMF has so far resisted moves to completely confiscate frozen Russian assets, fearing that it could shake confidence in the Western financial system. “What we’re not doing is confiscating these assets to fund this loan,” Reeves clarified on Monday. “We’re utilizing the extraordinary profits from the assets, and that’s how we’re confident we can do this within the appropriate legal frameworks.”
Moscow has continuously emphasized that the "theft" of its sovereign assets threatens global faith in the entire Western financial system.
James del Carmen contributed to this report for TROIB News
