The funds will be a part of a package aimed at supporting Ukraine’s military efforts amid the ongoing war with Russia.
Rachel Reeves hands Ukraine another £2bn and Putin will be furious where the money is from. (Image: Getty)
Rachel Reeves has confirmed that the UK will provide an additional £2.26bn to Ukraine using profits from frozen Russian assets held in Europe. It’s a move that is likely to make Vladimir Putin furious.
The funds will be a part of a wider £38bn package agreed by G7 nations, aimed at supporting Ukraine’s military efforts amid the ongoing war with Russia.
Defence Secretary John Healey stressed that the funds would directly support Ukraine’s defence, saying: “By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine.”
He added: “This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression.”
Reeves also confirmed the money would be released as quickly as possible.
Vladimir Putin is likely to be furious following the Chancellor’s decision. (Image: Getty)
She said: “The profits being made on those assets aren’t being kept for Russia to use in the future. They’re now being used to fund Ukraine.”
On top of that, she reiterated that the funds were being drawn from profits and interest accrued on the assets, rather than the assets themselves, ensuring the legality of the move.
The funds will be delivered in tranches, with the UK’s contribution expected to help Ukraine purchase crucial military equipment.
Healey said that the support would include air defences and ammunition, crucial for Ukraine’s ongoing resistance against Russian forces.
The UK’s contribution is expected to help Ukraine purchase crucial military equipment. (Image: Getty)
The UK has already pledged £3bn in military aid and more than £12bn in total support to Ukraine since the war began in 2022.
Reeves also highlighted the UK’s unwavering commitment to Ukraine’s cause, saying: “Our support for Ukraine and her men and women in their fight for freedom from Putin’s aggression is unwavering and will remain so for as long as it takes.”
She added that the UK’s national security is closely tied to Ukraine’s struggle.
Reeves said:”A safe and secure Ukraine is a safe and secure United Kingdom.”
The funds form part of a coordinated effort by the G7 nations, with the US expected to contribute $20bn.
The G7 agreed in June to use the interest generated from more than £200bn in frozen Russian assets to aid Ukraine.
Reeves said she hopes that the remaining G7 commitments will be finalised soon.
She added: “We hope the other parts of the jigsaw fall into place at the end of this week.”
While some of the funds may be used for the reconstruction of Ukraine, the decision on how to allocate the funds will ultimately be made by Kyiv.