UK to Supply Ukraine Using Seized Russian Funds
The UK has committed to providing Ukraine with a £2.26 billion loan to aid its efforts in the ongoing conflict with Russia, as announced by Chancellor of the Exchequer Rachel Reeves. Read Full Article at RT.com
TroibNews 
London intends to provide Kiev with a loan of approximately $3 billion, to be repaid through the interest accrued from Moscow's frozen assets.
According to Chancellor of the Exchequer Rachel Reeves, the UK will contribute £2.26 billion to Ukraine's war efforts against Russia as part of a larger G7 lending initiative. This announcement comes just before the gathering of G7 finance ministers during the meetings of the International Monetary Fund and World Bank 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 stated.
In June, G7 nations reached an agreement on a $50 billion loan for Ukraine, which will be funded by windfall profits from Russian assets. Initially, both the US and the EU were expected to contribute $20 billion each, while the UK, Canada, and Japan would cover the remaining amount. Earlier this month, the EU approved up to €35 billion toward the G7 loan, although this contribution may decrease if the US fulfills its commitment of $20 billion, as reported by Reuters.
Kiev's Western allies are now seeking to fast-track negotiations regarding the loan to ensure funding is secured before the end of the year. This urgency is partly due to concerns that Donald Trump might reduce US aid to Ukraine if he wins the upcoming election; the Republican nominee has consistently voiced skepticism regarding continued financial support for Ukraine, according to the Financial Times.
The repayment of this loan is expected to come from profits generated by an estimated €300 billion in assets that have been frozen in Western financial institutions since the conflict began in 2022. Moscow has referred to this situation as "theft." Approximately €197 billion of these assets are currently held by the Belgian clearinghouse Euroclear, which reported that the assets generated €3.4 billion in interest during the first half of 2024.
Despite being pressured by the US, the IMF has resisted calls for the complete confiscation of the frozen Russian assets, citing concerns that such actions could damage 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 repeatedly asserted that the “theft” of its sovereign assets held in Western financial institutions threatens to undermine global trust in the entire Western financial system.
James del Carmen for TROIB News
According to Chancellor of the Exchequer Rachel Reeves, the UK will contribute £2.26 billion to Ukraine's war efforts against Russia as part of a larger G7 lending initiative. This announcement comes just before the gathering of G7 finance ministers during the meetings of the International Monetary Fund and World Bank 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 stated.
In June, G7 nations reached an agreement on a $50 billion loan for Ukraine, which will be funded by windfall profits from Russian assets. Initially, both the US and the EU were expected to contribute $20 billion each, while the UK, Canada, and Japan would cover the remaining amount. Earlier this month, the EU approved up to €35 billion toward the G7 loan, although this contribution may decrease if the US fulfills its commitment of $20 billion, as reported by Reuters.
Kiev's Western allies are now seeking to fast-track negotiations regarding the loan to ensure funding is secured before the end of the year. This urgency is partly due to concerns that Donald Trump might reduce US aid to Ukraine if he wins the upcoming election; the Republican nominee has consistently voiced skepticism regarding continued financial support for Ukraine, according to the Financial Times.
The repayment of this loan is expected to come from profits generated by an estimated €300 billion in assets that have been frozen in Western financial institutions since the conflict began in 2022. Moscow has referred to this situation as "theft." Approximately €197 billion of these assets are currently held by the Belgian clearinghouse Euroclear, which reported that the assets generated €3.4 billion in interest during the first half of 2024.
Despite being pressured by the US, the IMF has resisted calls for the complete confiscation of the frozen Russian assets, citing concerns that such actions could damage 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 repeatedly asserted that the “theft” of its sovereign assets held in Western financial institutions threatens to undermine global trust in the entire Western financial system.
James del Carmen for TROIB News
