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UK will grant extra $1.3 billion of export financing for investments in Ukraine

by Sergiy Slipchenko December 9, 2021 4:06 PM 1 min read
Minister of Foreign Affairs Dmytro Kuleba meets with UK representatives in London on Dec. 8, 2021. (Dmytro Kuleba/Twitter)
This audio is created with AI assistance

The United Kingdom will provide an additional $1.3 billion (£1 billion) of export loan financing to projects in Ukraine, President Volodymyr Zelensky announced over Twitter on Dec. 8.

The money, which will be disbursed through the UK Export Finance agency (UKEF), will be assigned in addition to the $3.3 billion (£2.5 billion) that Zelensky and UK Prime Minister Boris Johnson agreed on in October 2020, bringing the total available funds to $4.6 billion (£3.5 billion).

UKEF provides affordable loans worldwide to companies wishing to use UK goods or services. To qualify for financing, a project must spend at least 20% of the total loan capital on imported British products. The agency was expanded after the UK's departure from the European Union in January 2020 in order to encourage trade outside the bloc.

UKEF also has the ability to guarantee the investments of British exporters looking to do business in Ukraine.

Minister of Foreign Affairs Dmytro Kuleba met with UK representatives on Dec. 8 and discussed topics including trade, energy security, defense, and education.

“Concluded our preparatory meeting of the UK-Ukraine Strategic Dialogue in London. Grateful for decisions proving that Kyiv and London are close allies. Additionally allocated resources will enable projects in infrastructure, healthcare and clean energy,” Kuleba tweeted about the extra funding.

The UK also supported Ukraine amid the growing threat of Russia's large-scale military action. According to Ukrainian and Western intelligence, Russia has amassed 94,000 troops near the Ukrainian border and in the occupied territories.

The joint statement signed by Kuleba and Elizabeth Truss, UK Secretary of State of Foreign Affairs, condemned Russia's actions and promised to continue the UK's support of Ukraine in protecting its sovereignty and territorial integrity.

Truss did not answer whether the UK will deploy troops to support Ukraine but insisted that the UK will stand with Ukraine.

"We are also discussing with our NATO allies other measures such as economic measures and diplomatic measures that can be taken, but we are very clear that we are standing with Ukraine in the face of this aggression."

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