Ukraine will receive GBP 1.7 billion under the UK guarantee to strengthen its defense capabilities: Minister of Finance ceremonially ink loan agreement

On the sidelines of the Ukraine Recovery Conference in Rome, Minister of Finance of Ukraine Sergii Marchenko signed a Facility Agreement to attract financing under the guarantee of the United Kingdom’s Export Finance Agency (UKEF).

The loan, amounting to nearly GBP 1.7 billion (about USD 2.3 billion), will be used to finance a priority project – Enhancing Air Defense Capabilities – being implemented by the Ministry of Defense of Ukraine.

The repayment period is 19 years, with a 6.5-year grace period.

The funds will be directed to finance the procurement from the UK of defense materials and other goods and services in the defense sector.

In July 2024, the Government of Ukraine and the Government of the United Kingdom of Great Britain and Northern Ireland signed a Framework Agreement. It provides for an export credit facility for Ukraine in a total amount of up to GBP 2 billion (about USD 2.7 billion) to enhance defense capabilities.

"The Government of Ukraine continues its consistent efforts to ensure the country’s financial stability and defense capability in partnership with international institutions and allied governments. I am grateful to the United Kingdom for its sustained efforts to strengthen Ukraine’s military power and enable us to effectively resist the enemy amid the full-scale war," stated Sergii Marchenko.

“By unlocking UKEF-backed finance, we’re enabling the delivery of vital equipment to Ukraine and strengthening our own defence industrial base. It’s a clear demonstration of our Plan for Change in action—backing British business, boosting exports, and standing shoulder to shoulder with Ukraine in the face of Russian aggression,” stated Minister for Services, Small Business and Exports Gareth Thomas.