UK to allocate funds from ERA initiative for weapons and equipment repair for Ukraine
The Project Agreement on ERA (excess profits from frozen russian assets) was signed. The total amount is USD 3 billion.
The signing ceremony was attended by Deputy Minister for Strategic Industries of Ukraine David Aloyan, First Deputy Minister of Defence Serhii Boyev and Director, Strategic Capability, Engagement and Operations, Defence Equipment and Support at the UK Ministry of Defence, Major General Anna-Lee Reilly.
"This funding is not only practical, but also of fundamental value. Excess profits from russian assets are used to reinforce Ukrainian defence as a response to aggression and in recognition of Ukraine's right to defend itself," said First Deputy Minister of Defence of Ukraine Serhii Boyev.
According to the agreement, Ukraine will receive USD 3 billion in 2025-2026. The funds will be used for the following:
- purchase of foreign-made defence products
- repair and maintenance of military equipment
- implementation of joint projects involving Ukrainian and international defence companies
- purchase of other critical materials, including Ukrainian-made products.
These resources will also be used to repair and maintain military equipment, including joint projects implemented by Ukrainian and foreign defence companies.
"It is extremely important now to attract additional funding to the Ukrainian defence industry. Our enterprises have a capacity of USD 35 billion, but the budget is insufficient to secure orders for this amount. Therefore, attracting excess profits from frozen russian assets will be a significant boost for the production and repair capacities of the Ukrainian defence industry," said David Aloyan, Deputy Minister for Strategic Industries of Ukraine.
The funds could potentially be used to purchase other critical materials.
The Ukrainian side expressed its gratitude to the UK Government for providing this financial package and for supporting arms production in Ukraine.
The ERA (Extraordinary Revenue Acceleration) initiative is a joint programme of the G7 countries aimed at supporting Ukraine. Its essence is to use the proceeds from frozen russian assets to repay loans provided by the G7 countries to Ukraine. The total amount of the programme is USD 50 billion, part of which will be used to meet defence needs.