Ukraine and the United Kingdom have concluded a substantial agreement on a £2 billion loan for Ukrainian defense needs. This agreement, reached during a visit by the Ukrainian delegation led by President Zelensky to London, offers favorable terms, including a low interest rate and a 15-year repayment period. Despite the official announcement of the signing, the exact contents of the document remain classified.
"According to the framework agreement, the loan will be utilized for implementing large-scale initiatives aimed at enhancing Ukraine's defense capabilities. This will reduce the burden on the state budget and allow in the short term to obtain the necessary weapons for the defense of our state, first of all, in the field of air defense," said the Minister of Defense of Ukraine Rustem Umerov, who signed the agreement alongside his British counterpart John Healey.
Read more: What is the New Mysterious Kamikaze Drone That Attacked Kyiv? (Photo)
Although some clues can be found in an official notification from the British government regarding a meeting between officials from both countries and representatives of leading British defense industries. Held on July 18 at Lancaster House, the meeting included representatives from BAE Systems, Thales UK, MBDA, KBR, Babcock, and also the UK Export Finance, a state-owned credit agency.
These companies are already actively involved in supplying products and collaborating with Ukraine. BAE Systems, ranked as the seventh-largest defense company in the world by profit, has an agreement with Ukraine to localize weapons production within the country.
Thales, a pan-European conglomerate, signed an agreement with Ukraine in June covering electronic warfare, anti-aircraft defense, and UAV development. MBDA, known for producing missile systems like Storm Shadow and Brimstone, has supplied these to Ukrainian forces. Even before russia's full-scale invasion in 2022, Babcock was leading a project to build patrol boats for the Ukrainian Navy.
Therefore, only the KBR (Kellogg Brown & Root) needs an introduction. It's an American corporation that specializes in engineering, construction, logistics support, supply and security, and defense and aerospace R&D.
In June 2024, KBR announced its active involvement in shaping current and future aid to Ukraine and noted its participation in the UK trade mission to Ukraine in the winter of 2023–2024. While the company did not disclose specifics, it mentioned cooperating with Ukrainian partners to "shape opportunities and deliver solutions."
The British government also revealed the current tasks of some companies. Sheffield Forgemasters, for example, is supporting the repair and overhaul of Ukrainian vehicles and will resume the production of artillery barrels in the UK. As it turned out, Britain no longer produced them, and therefore this restoration will ensure the supply of fresh gun barrels for 105-mm howitzers L119 and AS90 self-propelled guns currently used by Ukrainian forces.
Read more: Ammunition, Artillery and Brimstone Missiles: Britain Announces New Aid Package for Ukraine
