Ukraine signs £2bn defence loan agreement with the UK: details
19 July 2024 16:51
Ukraine’s Defence Minister Rustem Umerov and the UK Defence Secretary John Healey have signed an intergovernmental agreement on official loan support for Ukraine in developing its defence capabilities. This was reported by the press service of the President of Ukraine, according to "Komersant Ukrainian"
This agreement paves the way for the implementation of joint Ukrainian-British projects in the defence sector, the Office of the President of Ukraine says. It covers a wide range of areas of cooperation, including the supply, repair and even partial production of critical weapons systems. Particular attention is paid to air defence systems, armoured vehicles and ammunition.
The financial component of the agreement provides for the possibility for British suppliers to enter into loan agreements and contracts with Ukraine worth up to £2 billion. It is important to note that this amount is not final and may be increased in the future, depending on needs and circumstances.
Thanks to this agreement, Ukraine’s defence capabilities are expected to be significantly enhanced by 2026. In particular, the Defence Forces will receive new air defence systems, modern radar and strike capabilities. In addition, Ukraine will have access to advanced technologies and will be able to establish partial production of important components for Western-style artillery systems and armoured vehicles.
The agreement takes into account the difficult economic realities of Ukraine. Given the high cost of defence projects and the urgent need to rapidly develop military capabilities, it is currently impossible to finance these initiatives from the state budget of Ukraine. Therefore, a decision was made to use loan financing with a long repayment period of 15 years.
In April, the United Kingdom provided Ukraine with a record military aid package.
More news in the Kommersant Ukrainian telegram channel – https://t.me/komersant_ukrainskyi.
