The UK will provide credit support for the Ukrainian military industry worth £2B.

The United Kingdom and Ukraine have signed an intergovernmental agreement on official credit support for developing Ukrainian defense capabilities. The agreement will allow the start of Ukrainian-UK projects, including repairs and partial production of air defense systems, armored vehicles, and ammunition.

It will also enable UK suppliers to conclude £2B ($2.58B) in credit agreements and contracts with Ukraine. This amount is not final and may be increased with a repayment period of 15 years. Through this collaboration, by 2026 Ukraine’s military is expected to be supplied with air defense systems and means of radar location and destruction, obtain technologies, and master the partial production of components for artillery installations and Western armored vehicles.

At the same time, the UK, in cooperation with the Sheffield Forgemasters company, will resume the production of artillery barrels for Ukraine. This includes AS-90 155-mm self-propelled artillery installations and L119 105-mm howitzers, which are  used currently by Ukraine’s military.