The UK has provided Ukraine with £3.5 billion to purchase further military capabilities

The UK has provided Ukraine with £3.5 billion ($4.58 billion) to purchase British-made weapons.

The UK Ministry of Defense announced this.

A UK trade mission, formed of representatives from the Ministry of Defence, the Department for Business and Trade, and the Defense Trade Association ADS, visited the Ukraine Defense Industrial Forum to hold meetings with the Ukrainian Government and industry representatives.

During the meetings with Ukrainian officials, the British delegation sought to determine the list of the most needed weapons and equipment.

The UK Ministry of Defense will sign contracts with the UK industry on Ukraine’s behalf in accordance with the needs received.

“The UK’s support for Ukraine is ironclad. We continue to lead the way in providing military aid, but our support is much broader than simply providing equipment. By deepening our ties with Ukraine’s defense industry, we are expanding our own industrial capacity while boosting Ukraine’s own capabilities. We stand shoulder to shoulder with Ukraine, and we will provide support for as long as it takes,” MP Luke Pollard, Minister for the Armed Forces, stated.

The MOD already placed contracts with Thales for air defense missiles and Sheffield Forgemasters for artillery gun barrel forgings to warm up the industry in preparation for further orders.

Future orders are in the pipeline and will be funded by Ukraine, drawing on their own reserves and the £3.5 billion of United Kingdom export finance made available by the UK to support Ukraine’s war effort.

Loan agreement

In July 2024, Ukraine and the UK signed a loan agreement to finance Ukraine’s defense needs.

Within the agreement, Ukraine will receive £2 billion in loans to help it strengthen its defense capabilities. According to information published on the UK Ministry of Defense website, a new UK-Ukraine Defence Industrial Support Treaty will expand the range of military equipment that can be funded through £3.5 billion of UK Export Finance-guaranteed loans.

The agreement was signed by Rustem Umierov, Minister of Defense of Ukraine, and John Healey, Secretary of State for Defense of the United Kingdom. According to the agreement, the loan is granted for 15 years with an option to extend and at a favorable interest rate.

“Under the terms of the framework agreement, the loan will be used for large-scale projects to develop Ukraine’s defense capabilities, which will reduce the burden on the state budget and allow us to obtain the necessary weapons to protect our country in the short term, primarily in the field of air defense,” Rustem Umierov, Minister of Defense of Ukraine, noted.