UK-Ukraine Investment Surge to Benefit Both Nations
British investment boost in Ukraine to support security and prosperity of both countries
- New UK package of support for Ukraine’s immediate and longer-term needs at Ukraine Recovery Conference.
- UK and Ukraine conclude historic deal for Thales Air Defence missiles, boosting British growth and jobs and keeping Ukraine in the fight.
- UK also confirms up to £283 million in bilaterial assistance for Ukraine over the next year.
Two hundred British jobs will be created and another 700 safeguarded in a major defence deal between the UK and Ukraine to be signed at this year’s Ukraine Recovery Conference (URC).
The jobs at Thales in Belfast come as the UK and Ukraine successfully conclude the largest export credit agency-backed deal in Ukraine.
Supported by a £2.5 billion guarantee with a 19-year financing agreement, the funds can now be released. This enables the delivery of more than 5000 Air Defence missiles from British business Thales – in what is not only a major boost to the UK’s defence capabilities but will also keep Ukraine in the fight, boosting their defence against Russia’s illegal full-scale invasion.
Representing the Prime Minister at the conference, Deputy Prime Minister Angela Rayner and Minister for Exports Gareth Thomas will formally sign the agreement with the Government of Ukraine, marking a key milestone in the UK-Ukraine defence cooperation.
The deal delivers on this Government’s Plan for Change, by spending more on defence and creating jobs we will keep the country safe and boost economic growth.
In a speech at the conference in Rome, the Deputy Prime Minister will also reaffirm the UK’s bilateral assistance to Ukraine for the financial year 2025-2026 of up to £283 million. This will keep the country in the fight and ensure Ukrainians living through Russia’s illegal full-scale invasion have access to vital support across humanitarian, energy, stabilisation, reform, recovery and reconstruction needs.
Deputy Prime Minister Angela Rayner said:
As we continue to witness the enduring strength of the Ukrainian people, the UK stands by their side to provide the assistance their country needs to not only stay in the fight, but to rebuild and recover.
This announcement underlines our continued support for Ukraine – boosting their air defences against devastating drone and missile attacks and supporting the critical work to reconstruct this nation and provide the hope that they need.
This will also provide skilled jobs in the UK and is all part of our Plan for Change – bolstering the UK defence industry and strengthening our international ties.
Minister for Services, Small Business and Exports Gareth Thomas said on the Thales deal:
This landmark agreement is a powerful example of how British expertise is supporting Ukraine’s defence and recovery while creating high-quality jobs at home.
By unlocking UKEF-backed finance, we’re enabling the delivery of vital equipment to Ukraine and strengthening our own defence industrial base.
It’s a clear demonstration of our Plan for Change in action-backing British business, boosting exports, and standing shoulder to shoulder with Ukraine in the face of Russian aggression.”
The UK will provide up to £10.5 million for the Governance Reform Programme and up to £1 million in support of Ukraine’s Green Transition Office in financial year 2025 to 2026 to help Ukraine reform for the future. £10.5 million will go towards efforts on rule of law, justice and anti-corruption while £1 million will fund work on green transition and energy, both supporting Ukraine on its path to becoming a prosperous, green and modern European nation.
During the conference, British International Investment (BII) will also confirm €30 million for MHP, a leading Ukrainian agribusiness. MHP employs over 30,000 people in Ukraine, with more than 40% being women. The loan will help them to safeguard jobs and boost resilience in the food and agriculture sectors during Russia’s full-scale invasion. MHP, Ukraine’s largest poultry and processed meat producer, exports to over 70 countries.
Underpinning much of these efforts, the UK will endorse the Government of Ukraine’s insurance agreement. This initiative seeks to make insurance more affordable and widely accessible for businesses, including those in the UK, helping to derisk their investments into Ukraine.
The UK is committed to supporting Ukraine win the war and the peace, emerging as a stronger, more prosperous and free nation, resilient to Russian threats. Our 100 Year Partnership, alongside the commitments made at URC, reaffirm the UK’s iron-clad support for Ukraine now and into the future.
In total, the UK has committed £18.3 billion for Ukraine with £13 billion in military support and £5.3 billion in non-military support.
Background:
https://www.gov.uk/government/news/british-investment-boost-in-ukraine-to-benefit-both-countries