London: The United Kingdom has committed to providing Ukraine with a £2.26 billion loan under a new financial agreement signed in London on Saturday. The loan, part of the Group of Seven’s (G7) Extraordinary Revenue Acceleration (ERA) credit initiative, was finalized during Ukrainian President Volodymyr Zelenskyy’s visit to the UK, a day after his contentious meeting with U.S. President Donald Trump at the White House.
UK Prime Minister Keir Starmer warmly welcomed Zelenskyy, reaffirming Britain’s commitment to supporting Ukraine amid its ongoing conflict. “The United Kingdom continues to stand in defence of Ukraine. Today’s agreement, which contributes to strengthening Ukraine’s defence capabilities, confirms this,” Ukraine’s Finance Minister Serhii Marchenko stated.
Marchenko emphasized that the loan would be directed toward purchasing defence equipment tailored to Ukraine’s needs. The agreement aligns with the G7’s broader pledge, made in October 2024, to provide Ukraine with a $50 billion loan package.
The G7’s Loan Breakdown: The US as the Main Contributor
The United States had initially been the primary contributor to the G7 loan package, committing $20 billion in assistance. This was followed by European Union nations—including France, Germany, and Italy—which collectively pledged $19.4 billion. The remaining contributions included:
- Canada: $3.7 billion
- Japan: $3.07 billion
- United Kingdom: $2.8 billion
The G7 nations agreed to utilize the interest generated from frozen Russian assets to fund the loan package. Since the onset of the war, Western countries have frozen approximately $300 billion in Russian assets, though only around $3.2 billion in annual income from these funds is accessible. The majority of these frozen assets remain under European control.
Zelenskyy’s UK Visit: Diplomatic Support Amid US Tensions
Following his high-profile dispute with Trump and U.S. Vice President JD Vance, Zelenskyy was met with strong diplomatic backing in London. UK officials extended a warm welcome, with King Charles personally announcing an official audience with Zelenskyy at Sandringham.
Upon arrival, the Ukrainian leader expressed gratitude for Britain’s continued support, stating that Ukraine was fortunate to have “such friends.” Starmer, in turn, reiterated the UK’s commitment by announcing plans to host a summit of European leaders to discuss both the ongoing Russia-Ukraine war and broader European defence concerns.
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In recent months, Starmer has sought to position himself as a key intermediary between the US and Europe, working to bridge tensions. His visit to Washington included a carefully coordinated diplomatic effort, which featured delivering a letter from King Charles inviting Trump for a historic second state visit.
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UK-Ukraine Partnership: A Long-Term Commitment
The UK has remained one of Ukraine’s strongest allies throughout the war. In January, Starmer and Zelenskyy signed a landmark 100-year partnership agreement during a meeting in Kyiv. The agreement spans multiple sectors, including military cooperation, energy, science, culture, and economics, underscoring the UK’s long-term commitment to Ukraine’s stability and development.
