London to Lend $3 Billion to Kiev for War Effort Against Russia
London plans to lend Kiev some $3 billion, to be repaid using interest generated from Moscow’s frozen assets. The UK will provide Ukraine with a £2.26 billion ($2.94 billion) loan for its war effort against Russia as part of a broader G7 lending program, according to Chancellor of the Exchequer Rachel Reeves.
The announcement comes ahead of the gathering of G7 finance ministers during the International Monetary Fund (IMF) and World Bank meetings in Washington this week. Downing Street will contribute £2.26 billion to the G7 loan, as stated by the British finance minister on Monday. In June, G7 countries agreed to a $50 billion loan for Ukraine, sourced from windfall profits from Russian funds.
Kiev’s Western sponsors are attempting to expedite negotiations over the loan to secure funding before year-end. The loan will be repaid using profits from an estimated €300 billion in assets frozen in Western financial institutions since the onset of the conflict in 2022.
Despite pressure from the US, the IMF has thus far opposed the total confiscation of the frozen Russian assets due to concerns it could undermine confidence in the Western financial system. Moscow has repeatedly stressed that the “theft” of its sovereign assets held in Western financial institutions undermines global trust in the entire Western financial system.