Britain to direct $3 billion from frozen Russian assets to arms for Ukraine
Britain will direct $3 billion in profits from frozen Russian assets to fund Ukraine’s weapons purchases, equipment repairs, and defense projects in 2025–2026, Ukraine’s Defense Ministry announced.
The funds will support:
- procurement of foreign defense products,
- maintenance and repair of military equipment,
- implementation of joint projects with Ukrainian and international defense companies,
acquisition of critical materials, including Ukrainian-made products.
“Ukrainian enterprises have a production capacity of $35 billion, but insufficient funding prevents their full utilisation. Therefore, leveraging excess profits generated from frozen russian assets will significantly boost the production and repair capacities of Ukraine’s defense industry,” said Deputy Minister for Strategic Industries Davyd Aloian.
The allocation is part of the G7’s Extraordinary Revenue Acceleration (ERA) loan program, which aims to provide Ukraine with $50 billion, repaid through future profits from frozen Russian assets held in the EU and other jurisdictions.
The G7 holds about $280 billion in frozen Russian sovereign assets, which will remain immobilized until Russia compensates for its actions against Ukraine, according to Ukraine’s Finance Ministry.
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