The United Kingdom will allocate 3 billion dollars for weapons and military equipment repair for Ukraine, within the framework of the G7 debt guaranteed by Russian assets according to this source.
According to the Ukrainian Ministry of Defense, Kiev and London have reached an agreement to allocate the 3 billion dollars of proceeds obtained from the frozen Russian assets towards covering the needs of the Ukrainian army and defense industry, as part of the "Expedited Revenue Allocation Initiative" (ERA).
The ERA mechanism by the G7, which is valued at a total of 50 billion dollars, is based on providing loans to Ukraine; these loans will later be repaid with the proceeds from the frozen Russian assets.
The United Kingdom has promised to allocate a credit amounting to 2.26 billion pounds (approximately 3 billion dollars) to Ukraine within this initiative by the G7, which will be paid in three parts. Ukraine received the first payment—752 million pounds (970 million dollars)—on March 7.
According to the statement, these funds will be used for purchasing foreign-made defense products, repairing and servicing military equipment, implementing joint projects with Ukrainian and international defense companies, and acquiring essential materials, including local products.
"There is a production capacity worth 35 billion dollars within Ukrainian companies, but due to financial constraints, these potentials are not being fully utilized," said the Deputy Minister for Strategic Industries of Ukraine, David Aloian.
"Therefore, attracting surplus profit from the frozen Russian assets significantly enhances the production and repair capabilities within the Ukrainian defense industry."
Following Russia's full-scale invasion of Ukraine in 2022, the G7 countries froze approximately 300 billion dollars of Russian state assets.
The ERA initiative, primarily supported by the USA and the European Union, aims to redirect the proceeds from these frozen assets towards the defense and recovery of Ukraine.
Abdulloh Sayyid
