The United Kingdom will provide Ukraine with a $3.2 billion defense loan.

Ukraine and the United Kingdom have signed an agreement to provide £2.26 billion (approximately $3.2 billion or €2.74 billion) in support of its defense capabilities. This was reported by the press service of the Ministry of Finance of Ukraine on March 1.

The agreement was signed in the presence of UK Prime Minister Keir Starmer and Ukrainian President Volodymyr Zelensky. It is worth noting that the Ukrainian president arrived in London for the EU summit after leaving Washington early following a dispute with US President Donald Trump.

“The funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism from the G7 countries, totaling $50 billion. The loan will be serviced and repaid from future revenues generated from immobilized Russian sovereign assets,” the Ministry of Finance press service stated.

Funding under the project will be provided for 30 years. The funds will be allocated for the purchase of defense materials. It should be noted that under the ERA, Ukraine has already received $1 billion from the US and €3 billion from the European Union.

Recall that on February 24, the United Kingdom announced the provision of the largest military aid package to Ukraine, with a defense package worth £4.5 billion (over €5.4 billion) to be delivered within a year. What exactly will be included in the military aid package is currently unknown.

On the same day, the United Kingdom implemented the largest package of sanctions against Russia, with over a hundred companies and individuals falling under economic restrictions. Additionally, on February 24, the EU also introduced a new package of sanctions against Russia, which includes over 80 individuals, shadow fleet tankers, Russian banks, and media outlets.