UK to be first to contribute to Ukraine's military needs through G7 mechanism
The UK is allocating nearly $3 billion for military support to Ukraine through the Group of Seven or G7 includes the United States, Japan, Germany, the United Kingdom, France, Italy, and CanadaG7 mechanism, under which the money will be returned from the proceeds of frozen Russian assets.
This was announced by President Volodymyr Zelenskyy.
“This important step makes the UK the first G7 country to contribute to the Extraordinary Revenue Acceleration mechanism. Once again, the UK demonstrates its leadership and stands out as a true friend and partner to Ukraine,” he wrote.
The British Treasury confirmed the proposal: “Ukraine security = UK security”. They reminded that Ukraine has received £12.8 billion in support since the beginning of the Great War.
The Ministry of Finance of Ukraine has clarified that the funds will be provided under the G7 ERA mechanism totaling $50 billion. The money will be used to cover security and defense sector expenditures, including strengthening air defense, purchasing necessary military equipment, etc.
$50 billion for Ukraine
In June, the leaders of the Group of Seven agreed to provide Ukraine with a $50 billion loan. As collateral, they plan to use the profit from the interest on the frozen assets of the Russian central bank.
Bloomberg wrote that the funds will be used to support Ukraine's defense, economy, and recovery, but the details are still subject to change. The aid will start flowing by the end of the year.
The EU has already supported a loan to Ukraine for 2025 worth up to 35 billion euros. According to media reports, the United States is ready to contribute up to $20 billion.