Rachel Reeves has signed a £2.26 billion loan agreement with Ukraine to bolster its military capabilities against Russian aggression.
The loan agreement was signed during a virtual ceremony between Reeves and Ukrainian Finance Minister Sergii Marchenko during Ukrainian President Volodymyr Zelensky's visit to No10 today.
The loan will be repaid with profits generated from immobilised Russian sovereign assets.
During his meeting with the Ukrainian President, Sir Keir Starmer told Zelensky today: "You have full backing across the United Kingdom".
Rachel Reeves signs £2.26bn loan deal with Ukraine with plan to pay it back with frozen Russian assets
PA
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Starmer described the agreement as a sign of "our unwavering and ongoing support for the Ukrainian people".
The funds are specifically earmarked to support Ukraine's defence capabilities as the war continues.
This represents one of the most substantial financial commitments from Britain to Ukraine since the conflict began.
Reeves is now urging other European leaders to follow Britain's example in supporting Ukraine.
LATEST DEVELOPMENTS:Another significant step in strengthening Ukraine’s #defense capabilities. Together with President @ZelenskyyUa and PM @Keir_Starmer , we signed £2.26bn agreement with @hmtreasury @RachelReevesMP for🇺🇦military needs. These funds are ensured by the russian frozen assets.… pic.twitter.com/Zj2BxQmYRl
— Sergii Marchenko (@SergiiMarchenk3) March 1, 2025
"The world has changed, and we have to keep up with that and we have to respond to that," Reeves declared.
"The importance of hard power, of securing our defence, is clearly more important today than it has been for a long time."
In a statement released on X after their meeting, the Ukrainian president added: "During our talks, we discussed the challenges facing Ukraine and all of Europe, coordination with partners, concrete steps to strengthen Ukraine’s position, and ending the war with a just peace, along with robust security guarantees.
"A principled statement of support from the Prime Minister and an important decision: today, in our presence, Ukraine and the United Kingdom signed a Loan Agreement.
"This loan will enhance Ukraine’s defence capabilities and will be repaid using revenues from frozen Russian assets. The funds will be directed toward weapons production in Ukraine. This is true justice – the one who started the war must be the one to pay.
"I thank the people and Government of the United Kingdom for their tremendous support from the very beginning of this war. We are happy to have such strategic partners and to share the same vision of what a secure future should look like for all."
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Zelensky's London visit saw him receive "full backing" from PM Starmer.
Speaking inside Downing Street, the Prime Minister told the Ukrainian President: "Let me just say that you’re very, very welcome here in Downing Street.
"And as you heard from the cheers on the street outside, you have full backing across the United Kingdom, and we stand with you, with Ukraine, for as long as it may take.
"I hope you heard some of that cheering on the street.
"That is the people of the United Kingdom coming out to demonstrate how much they support you, how much they support Ukraine, and our absolute determination to stand with you unwavering determination and to achieve what we both want to achieve, which is a lasting peace.
"A lasting peace for Ukraine based on sovereignty and security for Ukraine so important for Ukraine, so important for Europe and so important for the United Kingdom.
"So I’m much looking forward to our discussions here this afternoon thank you very much for making the time to come."
Reeves signed the deal while Zelensky visited No10
PA
The warm words of the PM stood in stark contrast to his tense meeting with US President Trump just 24 hours earlier.
The White House meeting descended into a heated exchange that was broadcast worldwide.
Trump and Vice President JD Vance reportedly lectured Zelensky over what they perceived as a lack of gratitude for previous US support.
"You're gambling with millions of people... You're gambling with World War 3," Trump told Zelensky.
Despite the lashing, Zelensky expressed gratitude for international support in a series of posts on social media.
"Our relationship with the American President is more than just two leaders: It's a historic and solid bond between our peoples," he wrote.
