UK to allocate $3 bln from ERA initiative to strengthen Ukrainian defense

The UK Ministry of Defense, the Ministry of Defense of Ukraine and the Ministry for Strategic Industries signed a draft agreement on the use of excess profits from frozen Russian assets within the Extraordinary Revenue Acceleration (ERA) initiatives for armaments and repair of equipment for Ukraine, the press service of the Ministry of Defense reports.

"This funding has not only practical, but also fundamental value. Excess profits from Russian assets are directed to strengthening Ukrainian defense - as a response to aggression and recognition of Ukraine's right to defense," said First Deputy Minister of Defense of Ukraine Serhiy Boyev.

According to the agreement, during 2025-2026, Ukraine will receive $3 billion, the funds will be directed to: the purchase of foreign-made defense products; repair and maintenance of military equipment; implementation of joint projects with the participation of Ukrainian and international defense companies; purchase of other critically important materials, including Ukrainian-made products.

"Ukrainian enterprises have the capacity of $35 billion, but the shortage of funds does not allow them to be used to the full. Therefore, attracting excess profits from frozen Russian assets will be a significant boost for production and repair capacities of the Ukrainian defense industry," said Deputy Minister for Strategic Industries of Ukraine David Aloyan.

The Ukrainian side expressed gratitude to the British government for providing this financial package and for supporting arms production in Ukraine.