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UK Completes $1.02B Defense Loan to Ukraine Under G7 ERA Mechanism

Britain delivered the third and final tranche of a £2.26 billion ($3.07B) loan to Ukraine, funded through frozen Russian assets under the G7's ERA initiative.

Kyiv Post

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2026年4月16日

3 min read

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Ukraine received a £752 million ($1.02 billion) financial support tranche from Britain on Wednesday, April 15. According to the Ministry of Finance, these funds represent the final portion of the UK’s contribution under the G7’s Extraordinary Revenue Acceleration (ERA) initiative, provided as a 30-year loan to strengthen Ukraine’s defense capabilities.

Britain previously disbursed the first two tranches, totaling £1.5 billion ($2.04 billion), in March and April 2025. The G7’s ERA mechanism allows for immediate financial support, which is serviced and repaid using future profits generated from immobilized Russian sovereign assets.

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The payment completes a £2.26 billion ($3.07 billion) defense loan agreement signed on March 1, 2025, by Ukrainian Finance Minister Serhiy Marchenko and UK Chancellor of the Exchequer Rachel Reeves, Ukraine’s finance ministry said Wednesday in a press release.

Marchenko said the funds will be directed toward priority needs of the security and defense sector.

“Grateful to the UK’s Government for its consistent and resolute support for Ukraine in countering Russian aggression in the fifth year of full-scale war,” Marchenko is quoted.

ERA mechanism: profits from Russian assets

The Extraordinary Revenue Acceleration (ERA) initiative is a joint G7 program established in 2024 to provide $50 billion in financial assistance to Ukraine. The funds are repaid from profits on frozen Russian assets currently blocked under international sanctions.

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While the overall $50 billion package covers various needs, specific agreements – such as the one with the UK – are dedicated strictly to military and defense expenditures. This contribution is part of a broader, coordinated effort by G7 members, including the US, the European Union, Canada, and Japan, to ensure long-term, predictable financial flows supporting Ukraine’s resistance and recovery.

Last year, of the record $52.4 billion in total foreign budgetary support Ukraine received, approximately 70% ($37.9 billion) came through ERA. For 2026, Ukraine requires approximately $52 billion in external financing to ensure budget stability, with most of that gap expected to be filled by ERA disbursements, EU instruments, and bilateral partner support.

As of late March, Marchenko said Ukraine had already raised over $5.5 billion through ERA in early 2026. A subsequent $1.3 billion Japanese grant in early April brought total ERA revenues to $7.8 billion, including the British funds. An additional $1.4 billion in EU aid was generated from frozen Russian assets disbursed in April.