Ukraine: Extraordinary Revenue Acceleration Second Tranche Disbursal

Wednesday 23rd April 2025 Written Statements

[The Chief Secretary to the Treasury (Darren Jones)]

On 1 March 2025, the Chancellor of the Exchequer and her Ukrainian counterpart, Minister Marchenko, signed a £2.26 billion ($3 billion) loan agreement under the G7 extraordinary revenue acceleration loans for Ukraine scheme. The Government are disbursing their contribution to this scheme in three equal tranches over three fiscal years. The first tranche of £752 million was paid to Ukraine on 6 March 2025, with the second tranche paid on 14 April 2025.

The G7 ERA initiative is set to collectively provide approximately $50 billion in loans to Ukraine. This crucial funding will be repaid using future flows of extraordinary profits generated from immobilised Russian sovereign assets, which are primarily held within the EU.

Given the urgent needs of Ukraine and the significant public interest in Ukraine’s defence of its territory, as well as the broader security of Europe and the UK, there is insufficient time to wait for the usual parliamentary process to conclude to allow for the second tranche of UK support under this scheme to be distributed to Ukraine. The final tranche, payable in the next financial year, will be funded in the usual way through the estimates process.

Parliamentary approval for additional capital of £752,667,000 for this new expenditure will be sought in a main estimate for His Majesty’s Treasury. Pending that approval, urgent expenditure estimated at £752,667,000 has been met by repayable cash advances from the contingencies fund.

[HCWS595]