Ukraine, U.K., Sign Agreement to Use of $3 Billion from Frozen Russian Assets for Defense Procurement

The Ukraine and U.K., ministries of defense today signed an agreement on the use of $3 billion excess profits from frozen Russian assets within the framework of the Extraordinary Revenue Acceleration (ERA) initiative.

According to the agreement, Ukraine will receive $3 billion during 2025–2026. The funds will be directed to:

Procurement of foreign-made defense products;

Repair and maintenance of military equipment;

Implementation of joint projects with the participation of Ukrainian and international defense companies;

Procurement of other critically important materials, including Ukrainian-made products.

The document was signed on the Ukrainian side by First Deputy Minister of Defense of Ukraine Serhiy Boev and Deputy Minister for Strategic Industries of Ukraine Davyd Aloyan. On the British side, it was signed by Major General Anna-Lee Riley, Director of the Strategic Capabilities Engagement and Deployment Directorate of the United Kingdom Ministry of Defense.

"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," emphasized First Deputy Minister of Defense of Ukraine Serhiy Boev.

"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 the production and repair capacities of the Ukrainian defense industry," said David Aloyan, Deputy Minister for Strategic Industries of Ukraine.

The ERA (Extraordinary Revenue Acceleration) initiative is a joint program of the G7 countries aimed at supporting Ukraine. Its essence is to use the proceeds from frozen Russian assets to repay loans that the G7 countries provide to Ukraine. The total amount of the program is $50 billion, part of which will be used to meet defense needs.