UK to send Ukraine $3 billion from frozen Russian assets: How it’ll be spent
Photo: Ukraine to receive $3 billion from Britain at the expense of Russia's assets (mod.gov.ua)
In 2025-2026, Ukraine will receive $3 billion from the UK in excess profits from Russian assets, the Ministry of Defense of Ukraine reports.
According to the Ministry, First Deputy Defense Minister Serhii Boiev, Deputy Minister for Strategic Industries Davyd Aloian, and Director of the UK Ministry of Defense's Strategic Capabilities Engagement and Application Directorate Anna-Lee Reilly signed a project agreement to use the excess profits from frozen Russian assets as part of the Extraordinary Revenue Acceleration (ERA) initiative.
According to the agreement, Ukraine will receive $3 billion in 2025-2026, which will be used for:
- procurement of foreign defense products
- repair and maintenance of military equipment
- implementation of joint projects with the participation of Ukrainian and international defense companies
- purchase of other critical materials, including Ukrainian-made products.
According to Aloian, attracting excess profits from frozen assets will strengthen the production and repair capacities of the Ukrainian defense industry.
Russia's frozen assets
After Russia's full-scale invasion of Ukraine, Western countries froze about $300 billion of Russian state assets, most of which are held in European financial institutions, particularly in Belgium.
The West is discussing using the proceeds of these assets-or even the funds themselves support Ukraine, particularly for its reconstruction.
Recently, it was reported that the European Union will allocate about a billion dollars in the coming weeks from the extraordinary proceeds of frozen Russian assets.
