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UK Pledges $3 Billion to Ukraine’s Defense Using Frozen Russian Assets Profits

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Amira Barkhush
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UK Pledges $3 Billion to Ukraine’s Defense Using Frozen Russian Assets Profits
A row of AS90 155mm self-propelled artillery systems operated by members of the Ukrainian and British Armed Forces move into firing positions during a training session on February 21, 2023, in Southern England. (Source: Getty Images)

The United Kingdom will provide $3 billion to Ukraine’s defense sector, using profits generated from frozen Russian assets under the G7’s Extraordinary Revenue Acceleration  (ERA) initiative, the Ukrainian Ministry of Defense confirmed on May 27.

According to the Ministry, the funds will be distributed over 2025–2026 and used to procure foreign-made defense equipment, critical materials, and to support the repair and maintenance of military hardware.

Part of the funding will also support joint projects involving Ukrainian and international defense companies.

Deputy Minister for Strategic Industries David Aloyan stated that Ukrainian enterprises currently have production capacity valued at $35 billion, but financial constraints limit their output.

He emphasized that redirecting extraordinary profits from frozen Russian assets would significantly enhance Ukraine’s manufacturing and maintenance capabilities.

“This funding carries not only practical but also symbolic importance,” stated First Deputy Minister of Defense of Ukraine Serhii Boiev. “Redirecting windfall profits from Russian assets to bolster Ukraine’s defense is both a response to aggression and a recognition of Ukraine’s right to self-defense,” he emphasized.

On May 19, it was reported that Finland has joined a list of EU countries channeling proceeds from frozen Russian assets toward Ukraine’s defense. Under a new €90 million agreement with the European Commission, Finland will deliver ammunition to Ukraine, sourced directly from Finnish defense manufacturers.

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The Extraordinary Revenue Acceleration (ERA) is a financial initiative endorsed by G7 countries that aims to utilize the extraordinary profits (interest and investment returns) generated from frozen Russian sovereign assets.