UK announces multi-million dollar economic package for Ukraine amid tensions with Russia

As the Russia-Ukraine crisis continues to worsen, the UK has asserted that it is committed to helping Kyiv. On Wednesday, February 23, UK Foreign Secretary Liz Truss reaffirmed the United Kingdom's commitment to guaranteeing up to $500 million in loan to help Ukraine and promised to alleviate the economic effects of Russian aggression.

As per a press release, the UK has said that it is prepared to guarantee Multilateral Development Bank (MDB) loans for projects that would promote economic stability and critical reforms such as anti-corruption efforts. This assistance will aid in reducing the economic effects of Russia's attack on Ukraine.

Foreign Secretary Liz Truss stated that they are putting their money where their mouth is and supporting the people of Ukraine with Britain's economic knowledge and strength. She added that these assurances can help Ukraine's economy survive the storm of Russian aggression by bringing in much-needed investments. She also claimed that the United Kingdom firmly supports Ukraine and its people. Truss said that they are prepared to provide direct economic assistance, defensive armaments and expose Russian attempts to fabricate invasion pretexts.

UK boosts financial assistance under UKEF

In December, last year, the UK boosted the amount of financial assistance available to Ukraine from UK Export Finance (UKEF) to £3.5 billion and signed a new pact to help Ukraine gain access to the world-class UK supply chain to improve its naval capabilities. This financial assistance is in addition to the Ministry of Defence's increased support for military equipment and expanded assistance to Ukraine's humanitarian system.

Meanwhile, Truss also stated that the UK is prohibiting Russia from selling sovereign debt in London as part of a very harsh package of sanctions, according to a report by The Guardian. The foreign secretary announced a ban on the sale of sovereign debt, which is issued as bonds by governments in foreign currencies. This comes as Putin deployed military forces into two regions of eastern Ukraine on Tuesday, February 22.

UK threatens more severe sanctions if Russia invades Ukraine

Truss said that the Uk has been very clear that they are going to limit Russian access to British markets, according to Sky News. She also said that if there is a full-scale invasion of Ukraine, there will be even more severe sanctions against important Russian oligarchs and organisations, which will limit Russia's access to financial markets.

(Image: AP)