Ukraine and the United Kingdom have signed a £2bn loan agreement, Ukraine's Defence Ministry reports.
The framework agreement provides for a £2 billion loan to finance Ukraine's defence needs.
On behalf of the governments of Ukraine and the UK, the bilateral document was signed by Defence Minister Rustem Umerov and Defence Secretary John Healey.
The purpose of the agreement is to provide financial support to strengthen Ukraine's defence capabilities, including the purchase of modern weapons, military equipment and other defence equipment in accordance with NATO standards.
‘Under the terms of the framework agreement, the loan will be used for large-scale projects to develop Ukraine's defence capabilities, which will reduce the burden on the state budget and allow us to obtain the necessary weapons to defend our country in the short term, primarily in the field of air defence,’ said Rustem Umerov, Minister of Defence of Ukraine.
The loan is provided for 15 years with an option to extend and at a favourable interest rate.
‘This agreement is one of the key elements of our strategy to strengthen the country's defence capabilities. We are grateful to our British partners for their support and are confident that this partnership will help us ensure security and peace in Ukraine,’ Rustem Umerov concluded.
A joint commission including representatives of both governments will monitor the targeted use of the loan funds to ensure transparency and efficient use of the funds.
The Guardian recently reported that Ukrainian President Volodymyr Zelenskyy asked British Prime Minister Keir Starmer to ‘demonstrate your leadership’ in allowing Ukraine to use long-range weapons against Russia.