The United Kingdom will allocate ERA initiative funds to support Ukraine’s armament needs and equipment repairs

Under the Extraordinary Revenue Acceleration (ERA) initiative, the Ministry of Defence of Ukraine, the Ministry of Strategic Industries of Ukraine, and the Ministry of Defence of the United Kingdom have signed a project agreement to use excess profits generated from frozen russian assets.

On behalf of Ukraine, the agreement was signed by First Deputy Minister of Defence Sergiy Boyev and Deputy Minister of Strategic Industries of Ukraine Davyd Aloian. On behalf of the United Kingdom, the agreement was signed by Major General Anna-Lee Reilly, Director Strategic Capability, Engagement and Operations, Defence Equipment and Support, Ministry of Defence of the United Kingdom.

“This funding is valuable not only in practical terms, but also as a matter of principle. The use of excess profits from russian assets to reinforce Ukraine’s defence is a just response to aggression and an acknowledgement of Ukraine’s right to self-defence,” said First Deputy Minister of Defence Sergiy Boyev.

Under the agreement, Ukraine is to receive $3 billion over 2025–2026. The funds will be allocated for the following purposes:

• Procurement of defence products manufactured abroad;
• Repair and maintenance of military equipment;
• Implementation of joint projects involving Ukrainian and international defence companies;
• Procurement of other critically essential materials, including products manufactured in Ukraine.

“Ukrainian enterprises have a production capacity of $35 billion, but insufficient funding prevents their full utilisation. Therefore, leveraging excess profits generated from frozen russian assets will significantly boost the production and repair capacities of Ukraine’s defence industry,” noted Deputy Minister of Strategic Industries of Ukraine, Davyd Aloian.

The Ukrainian side expressed gratitude to the UK government for providing this financial package and supporting arms production in Ukraine.

The ERA (Extraordinary Revenue Acceleration) initiative represents a collaborative effort by the G7 countries to support Ukraine. It involves using profits generated from frozen russian assets to repay loans provided to Ukraine by the G7 countries. The program’s total funding is $50 billion, with part designated for defence purposes.