Britain will send $3 billion from frozen Russian assets for Ukraine's armament.

Ukraine will receive $3 billion for the procurement of military equipment

The Ministry of Defense of Ukraine, the Ministry of Defense of the United Kingdom, and the Ministry of Strategic Industries signed a project agreement for the use of $3 billion from the Extraordinary Revenue Acceleration (ERA) initiative.

Funds from the excess profits of frozen Russian assets will be directed towards armament and repair of military equipment for the Ukrainian armed forces.

Funding is planned for the period of 2025-2026 and has a multi-purpose designation. The money will be used for the procurement of foreign-made defense products, repair and maintenance of military equipment, implementation of joint projects involving Ukrainian and international defense companies, as well as the acquisition of critically important materials, including products made in Ukraine.

'This funding has not only practical but also principled value. Excess profits from Russian assets are directed at strengthening Ukrainian defense – as a response to aggression and recognition of Ukraine's right to self-defense,' said Oleksandr Boyev, First Deputy Minister of Defense of Ukraine.

Deputy Minister for Strategic Industries of Ukraine David Aloyan emphasized the significance of this funding for the national defense-industrial complex. 'Ukrainian enterprises have capabilities worth $35 billion, but the lack of funds does not allow us to utilize them fully. Therefore, attracting excess profits from frozen Russian assets will significantly enhance the production and repair capacities of the Ukrainian defense industry,' he noted.

The Ukrainian side expressed official gratitude to the government of the United Kingdom for providing the financial package and supporting weapon production in Ukraine.

Analysis

The signed agreement for funding of $3 billion is an important step in strengthening Ukraine's defense capability and developing the national defense-industrial complex. This will allow purchasing modern weaponry, conducting repairs of military equipment, and developing joint projects with international partners.