Latest news with #DavydAloian
Yahoo
27-05-2025
- Business
- Yahoo
UK to funnel $3 billion to Ukraine's arms, hardware repairs under G7 loan covered by Russian assets
Kyiv and London signed an agreement to use $3 billion profits from frozen Russian assets under the Extraordinary Revenue Acceleration (ERA) initiative to cover the needs of the Ukrainian army and the Ukrainian defense industry, Ukraine's Defense Ministry announced on May 27. The G7's ERA mechanism, totaling $50 billion, provides loans to Ukraine that will be repaid using future profits from frozen Russian assets. The U.K. has pledged to lend Ukraine 2.26 billion pounds (around $3 billion) in three equal installments as part of the G7's ERA initiative. Ukraine received the first installment worth 752 million pounds ($970 million) on March 7. The funds will be used to purchase foreign-made defense products, repair and maintain military equipment, implement joint projects with Ukrainian and international defense companies, and purchase other critical materials, including Ukrainian-made products, the statement read. "Ukrainian enterprises have capacities worth $35 billion, but the lack of funds does not allow them to utilize them to the fullest," Deputy Strategic Industries Minister Davyd Aloian said. "Therefore, attracting excess profits from frozen Russian assets will significantly boost the production and repair capacities of the Ukrainian defense industry." Since Russia's full-scale invasion began in 2022, G7 countries have frozen approximately $300 billion in Russian sovereign assets. The ERA initiative, backed primarily by the U.S. and the EU, aims to use profits from these frozen assets to finance Ukraine's defense and reconstruction. Read also: Why did Russia invade Ukraine? Debunking Putin's 'root causes' claims We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
27-05-2025
- Business
- Yahoo
UK to allocate US$3bn in profits from frozen Russian assets to strengthen Ukraine's defence
The UK Ministry of Defence, the Ukrainian Ministry of Defence and the Ministry of Strategic Industries of Ukraine have signed a project agreement on the use of windfall profits from frozen Russian assets under the Extraordinary Revenue Acceleration (ERA) initiative to arm and repair equipment for Ukraine. Source: European Pravda, as reported by the press service for the Ministry of Defence of Ukraine Details: "This funding has not only practical but also fundamental value. Surplus profits from Russian assets are being used to strengthen Ukraine's defence in response to aggression and in recognition of Ukraine's right to self-defence," said First Deputy Defence Minister Serhii Boiev. According to the agreement, Ukraine will receive US$3 billion between 2025 and 2026. The funds will be used to purchase foreign-made defence products, repair and maintain military equipment, implement joint projects involving Ukrainian and international defence companies, and purchase other critical materials, including Ukrainian-made products. "Ukrainian companies have a capacity of US$35 billion, but a lack of funds prevents them from being fully utilised. Therefore, attracting windfall profits from frozen Russian assets will significantly strengthen the production and repair capacities of the Ukrainian defence industry," said Davyd Aloian, Deputy Minister for Strategic Industries of Ukraine. Background: In 2024, the G7 agreed to jointly provide Ukraine with a loan of US$50 billion from Russian assets: the funds will be formally provided as a loan but will be repaid from the proceeds of frozen Russian assets. In May, the European Commission disbursed the fourth tranche of macro-financial assistance to Ukraine in the amount of €1 billion under the G7 ERA initiative, which provides financial resources to Kyiv from the proceeds of frozen Russian assets. Support Ukrainska Pravda on Patreon!
