UK Sends Ukraine £752M Backed by Frozen Russian Assets

Ukraine has received £752 million (approximately $1 billion) from the UK via the G7-backed Extraordinary Revenue Acceleration (ERA) initiative.

The funding, announced by Ukraine’s Ministry of Finance on Tuesday, April 15, marked the second tranche of financial aid from the UK based on the two nations’ earlier agreement on March 1 to fund Ukrainian defense. 

“On March 1, 2025, the Minister of Finance of Ukraine Serhiy Marchenko and the Chancellor of the Exchequer of the United Kingdom Rachel Reeves signed an Agreement on providing Ukraine with funding totaling £2.26 billion (about $3 billion) to strengthen the state’s defense capabilities,” the announcement says. 

The March 1 agreement, in turn, forms part of the G7-backed ERA initiative to provide Kyiv with a total of up to $50 billion over the next 30 years, to be repaid using proceeds from frozen Russian sovereign assets.

Ukraine received the first tranche of £752 million ($995.2 million) from the UK under the agreement on March 7, 2025. The total amount received has reached £1.5 billion (almost $2 billion) after the latest tranche.

“I am grateful to the UK Government for its unwavering support of Ukraine in our fight against Russian aggression,” Marchenko said. 

On April 9, Ukraine also received the second $1.08 billion tranche from the EU under the ERA initiative, which will cover “priority state budget expenditures,” Kyiv Post previously reported. 

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Ukraine is poised to singlehandedly, through its own ingenuity and innovation, take out around 10% of Russia’s annual war budget.

Western nations froze Moscow’s sovereign assets overseas after the latter’s 2022 invasion of Ukraine. 

The ERA initiative is designed to repurpose profits generated from approximately €210 billion ($227 billion) in immobilized Russian central bank assets, most of which are held within the EU. Kyiv is still eyeing the principal €210 billion assets to help rebuild the nation devastated by the invasion.

Revenues from these assets – estimated at €2.5–3 billion ($2.7–3.25 billion) annually, depending on market rates – are redirected to support Ukraine without creating an additional debt burden. 

Unlike previous aid packages, funds under the ERA program are not loans and do not add to Ukraine’s external debt.