In a strategic move to support Ukraine, the U.K. has agreed to provide a £2.26 billion loan backed by frozen Russian assets. This loan is part of the G7 initiative to offer Kyiv a $50 billion loan by year-end, with repayments coming from interest earned on the assets. The funds will specifically bolster Ukraine’s military capabilities, including artillery and air defense systems. Rachel Reeves, the U.K. chancellor of the exchequer, emphasized the importance of a secure Ukraine for the United Kingdom’s defense. Additionally, British Defense Minister John Healey mentioned potential investments in long-range drones for Ukraine’s defense.
Moreover, the EU has approved a €35 billion loan for Ukraine using Russia’s frozen assets, with the aim of aiding reconstruction and defense efforts. The loan will offer Ukraine flexibility in spending the funds. European countries collectively hold around two-thirds of the $300 billion Russian assets that have been immobilized due to the conflict. This financial support signifies a strong commitment to Ukraine’s security and reconstruction in the face of continued hostilities.
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