UK-Backed £1.7 Billion Loan to Boost Ukraine’s Air Defense Capabilities
On the sidelines of the Ukraine Recovery Conference in Rome, Ukrainian Finance Minister Serhii Marchenko signed a major credit agreement to secure nearly £1.7 billion (approx. $2.3 billion) in financing under the guarantee of the UK Export Finance Agency (UKEF), The Gaze reports.
The long-term loan, with a 19-year repayment period and a 6.5-year grace period, will support Ukraine’s priority air defense development project led by the Ministry of Defense. The funds will be used to procure UK defense materials, goods, and services, strengthening Ukraine’s ability to repel continued Russian attacks.
The agreement follows the Framework Agreement signed between the governments of Ukraine and the United Kingdom in July 2024, which envisions up to £2 billion in export credit to enhance Ukraine’s defense capabilities.
“The Ukrainian government continues its consistent work to ensure the country’s financial stability and defense capacity in partnership with international institutions and allied governments. We are grateful to the UK for its sustained support in strengthening Ukraine’s military resilience and ability to resist the enemy in a full-scale war,” said Finance Minister Serhii Marchenko.
Gareth Thomas, UK Minister for Services, Small Business, and Exports, added:
“By unlocking this financing through UKEF, we’re delivering vital military equipment to Ukraine while also strengthening our domestic defense industrial base. It’s a clear demonstration of our Plan for Change in action—backing British businesses, boosting exports, and supporting Ukraine in its fight against Russian aggression.”
As The Gaze previously reported, at the Ukraine Recovery Conference (URC 2025) in Rome, the Government of Norway and the United Nations Development Programme (UNDP) announced a $200 million initiative to support the green reconstruction of Ukraine’s energy sector, heavily damaged by Russian attacks.
Read more on The Gaze: Ukraine’s Reconstruction: A Test of Western Resolve and Domestic Reform