Ukraine receives first tranche from the UK under the G7 loan using Russian assets

Ukraine has received the first tranche of funds from the United Kingdom under a G7 loan using proceeds from Russia’s frozen assets.

The Ukrainian Prime Minister, Denys Shmyhal, made this announcement on his X account.

Shmyhal said that Ukraine had received the first funds from the United Kingdom under the G7 loan, secured by the proceeds of frozen Russian assets—752 million pounds.

“The funds will be used to strengthen Ukraine’s defense capabilities” I am grateful to Keir Starmer, the UK government, and our G7 partners for the mechanism that makes Russian funds work for Ukraine. We expect that all sovereign assets of the Russian Federation will be confiscated in the future and transferred to our country,” the Prime Minister of Ukraine wrote.

In 2024, the G7 nations agreed to jointly provide Ukraine with a $50 billion loan from Russian assets: the funds would be provided formally as a loan but would be repaid from the proceeds of frozen Russian assets.

At the end of December 2024, Ukraine received the first tranche of the planned $20 billion US contribution from the United States, and in January 2025, the first €3 billion from the EU.

These are separate funds from those provided under the EU’s Ukraine Facility program, which came into effect on March 1, 2024. It provides up to €50 billion in stable financing in the form of grants and loans to support the recovery, reconstruction, and modernization of Ukraine for the period from 2024 to 2027.