Ukraine and the United Kingdom discuss financing defence priorities through ERA Loans
Ukraine is counting on the swift allocation of additional support to strengthen its position on the battlefield. This was discussed during a meeting between Ukraine’s Minister of Defence, Mykhailo Fedorov, and UK Chancellor of the Exchequer, Rachel Reeves.
The meeting also featured a demonstration of Ukrainian- and British-made drones.
Mykhailo Fedorov thanked the United Kingdom for its steadfast support for Ukraine and highlighted the close coordination with the UK, particularly within the Ukraine Defense Contact Group (Ramstein format).
The Minister of Defence also outlined Ukraine’s AIR–LAND–ECONOMY strategy and the progress made in its implementation.
ERA Loans for drone procurement
A central topic of the meeting was the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, which makes it possible to channel proceeds generated from frozen russian assets towards supporting Ukraine.
Ukraine proposed allocating funding under this mechanism to the procurement of drones. The United Kingdom announced its readiness to provide such support during the previous Ramstein-format meeting.
Ukraine currently has a window of opportunity to increase pressure on russia on the battlefield. To seize this opportunity, it is essential to rapidly finance capabilities that have already proven effective in modern warfare.
Mykhailo Fedorov called on the United Kingdom to help swiftly direct these resources towards Ukraine's defence priorities.
A new defence procurement strategy
Mykhailo Fedorov also spoke about the defence procurement reform.
Ukraine has reformed its procurement framework and is moving to open, competitive procurement procedures. The initial results have already delivered budget savings, enabling additional resources to be allocated to the Defence Forces of Ukraine.
Economic pressure on russia
The parties also discussed the need to maintain economic pressure on russia.
Particular attention was given to countering russia's shadow fleet, which remains one of the key means of circumventing sanctions and financing the war against Ukraine. Mykhailo Fedorov thanked the United Kingdom for its sanctions policy towards russia and its decisive action against russian tankers.
Air defence as a key challenge
The Minister of Defence also underlined that russian glide bombs and ballistic missiles remain the two main challenges for Ukraine on the battlefield.
Ukraine, therefore, looks to continued support through the Prioritised Ukraine Requirements List (PURL) mechanism, as well as the continued supply of missiles for Ukraine's air defence. This is vital for protecting cities and critical infrastructure.