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Yuri Zoria


UK uses Russian frozen profits to back Ukraine with $3 bn defense deal

The ERA initiative aims to bolster arms production and repairs through 2026.
uk uses russian frozen profits back ukraine $3 bn defense deal ukrainian british officials after signing medium_jrs-0845-8e8efbf667 27 2025 ukraine’s ministry announced united kingdom allocate funding era (extraordinary revenue acceleration)
Ukrainian and British officials after signing a deal. Photo: Ukraine’s Defense Ministry
UK uses Russian frozen profits to back Ukraine with $3 bn defense deal

On 27 May, Ukraine’s Defense Ministry announced that the United Kingdom will allocate funding from the ERA (Extraordinary Revenue Acceleration) initiative to support Ukraine’s military needs. Under this agreement, Ukraine is set to receive $3 billion over 2025–2026. The funds originate from excess profits generated by frozen Russian assets.

The ERA initiative is a program led by the G7 countries. It is designed to use profits from frozen Russian assets to repay loans made to Ukraine amid the ongoing Russo-Ukrainian war. The total value of the ERA initiative stands at $50 billion, with part of that sum allocated to defense.

The Ministry reported that the agreement was signed by First Deputy Minister of Defense of Ukraine Serhii Boiev and Deputy Minister of Strategic Industries of Ukraine Davyd Aloian. Representing the United Kingdom, Major General Anna-Lee Reilly, Director Strategic Capability, Engagement and Operations at the UK Ministry of Defence, signed the agreement.

Funding targets defense procurement and repairs

Ukraine’s Defense Ministry detailed that the funding will be used for:

  • Procurement of defense products manufactured abroad;
  • Repair and maintenance of military equipment;
  • Joint projects between Ukrainian and international defense companies;
  • Procurement of critically essential materials, including items made in Ukraine.

According to Boiev, the use of Russian-origin profits for defense purposes is “not only valuable in practical terms, but also as a matter of principle.” He stated:

The use of excess profits from Russian assets to reinforce Ukraine’s defense is a just response to aggression and an acknowledgement of Ukraine’s right to self-defense.”

Ukraine seeks to unlock production potential

Deputy Minister Davyd Aloian emphasized the importance of the funding in activating domestic capacity:

Ukrainian enterprises have a production capacity of $35 billion, but insufficient funding prevents their full utilization. Therefore, leveraging excess profits generated from frozen Russian assets will significantly boost the production and repair capacities of Ukraine’s defense industry.”

The Ukrainian side thanked the United Kingdom for providing the financial support and for backing Ukraine’s armament production efforts.