Russia’s frozen assets are being used by the UK for a $3 billion loan to Ukraine
St Petersburg, Russia
The British government is tapping Russia’s frozen assets for a loan to Ukraine, with the intention of helping Kyiv secure more military and fund reconstruction costs.
The loan, which amounts to £2.3 billion, or $3 billion, is being provided using profits generated from Russian assets, according to a memo on the UK government website. The package adds to the $16.6 billion that the British government has already given to Ukraine for support.
The loan is part of a larger $50 billion funding package the G7 nations have pledged to Ukraine. Bloomberg reported that other G7 nations are expected to confirm the size of their loans in a meeting on Friday.
“By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine. This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression,” John Healey, the UK Defence Secretary, said in a statement.
About $322 billion of Russian assets were frozen abroad as the West imposed sanctions to hobble the Kremlin’s war machine following the invasion of Ukraine in 2022. The $280 billion of the funds frozen in Europe are expected to generate around up $3billion to $5 billion of profits each year, per Bloomberg’s report.
