U.K. Announces £10 Billion Support Package for Ukraine, Its Largest to Date

Britain has announced a further £10 billion in economic and military support for Ukraine, which the Treasury calls the largest ever package of financial backing for Ukraine from the U.K., as Russia keeps attacking the country’s energy infrastructure ahead of winter.

Prime Minister Andy Burnham and Chancellor John Healey told Ukrainian President Volodymyr Zelensky of the decision in a call on the morning of October 28, before Healey announced it to Parliament in the Budget. Healey told lawmakers the £10 billion would be “based on loans, export finance guarantees and £500 million in urgent military funding for this winter,” Reuters reported.

£7 Billion in Economic Support Over Three Years

The economic support of £7 billion will be made available over three years. It includes up to £5.5 billion of World Bank guarantees and a £500 million grant contribution to the World Bank’s International Development Association crisis facility, which is expected to mobilize £1.5 billion of support for Ukraine.

The package is made up largely of guarantees and loans rather than a £7 billion cash transfer, according to Healey’s description to Parliament.

£3 Billion More in Export Finance for Weapons

UK Export Finance (UKEF) capacity for Ukraine will increase by £3 billion, prioritized for military support, bringing total UKEF cover to £6.5 billion. Export finance is government-backed financing for purchases from British exporters, so the £3 billion is spending capacity, not a military grant.

Zelensky said the export support would be used primarily to buy weapons. He said the funding is in addition to the annual assistance Britain already provides.

£500 Million for Winter Air Defenses

The package also includes £500 million in additional military support from the Ministry of Defence to plug urgent gaps in Ukraine’s air defenses this winter, in response to Russian attacks on critical infrastructure. The Treasury said that, together with £750 million already committed from the U.K.’s Extraordinary Revenue Acceleration loan, it takes British military support to Ukraine this year to £4.3 billion.

Ukraine has been short of air defense interceptors as Russia steps up its strikes, as Clash Report has reported. Burnham has also been lobbying Washington for Patriot missiles for Ukraine, and Britain recently sent more Storm Shadow missiles.

Total Commitments Reach £35 Billion

The package is in addition to the £3 billion a year in military support the U.K. has committed to Ukraine until at least 2030-31 or for as long as it takes. Including the new announcement, the government says it has committed £35 billion to Ukraine in total: £16 billion in military support (including the U.K.’s £2.26 billion Extraordinary Revenue Acceleration loan contribution), up to £12.6 billion in non-military support (including bilateral assistance and fiscal guarantees) and a £6.5 billion cover limit for export finance, via UK Export Finance, for reconstruction and defense projects.

The total mixes grants, guarantees and financing limits, so it is not £35 billion in cash transfers.

Zelensky Welcomes the Package

Healey told Parliament that Zelensky had said “you’ve made my day.” Zelensky later called the package “a truly strong and very timely step,” coming “right as Russia needs to see and feel that Ukraine will not be left alone,” in a post on social media, and said he and Burnham also discussed sanctions on Russia.

Burnham said the package should “leave no one in any doubt of our unflinching backing for as long as it takes.” Healey said: “Today we send a clear message to Moscow: Britain will stand with Ukraine for as long as it takes,” according to CNBC.

The announcement follows Zelensky’s visit to Downing Street on October 14, when Burnham set out a new package of Lightweight Multirole Missiles. The support is framed within the U.K.-Ukraine 100 Year Partnership, which commits Britain to annual military assistance of no less than £3 billion until 2030-31.