Nearly two years after Russia’s aggressive invasion of Ukraine, the UK remains steadfast in its support for the Ukrainian people against Russian aggression.

The UK is actively providing substantial economic, humanitarian, and defensive aid to Ukraine, including export credits and insurance through UK Export Finance (UKEF). In line with this commitment, UKEF has already allocated financing for the reconstruction of six bridges in Kyiv and has supported Urenco’s contract to supply fuel to Energoatom, Ukraine’s largest power producer. Additionally, UKEF has facilitated payment risk insurance for UK exporters engaged in trade with Ukraine.

Despite the elevated risks associated with supporting Ukraine during a time of war, the UK government has deemed it necessary for UKEF to maintain coverage for Ukraine, ensuring that its £3.5 billion financial capacity for UK exporters and buyers in Ukraine remains accessible.

However, providing support to Ukraine during conflict situations exceeds UKEF’s typical risk standards established by HM Treasury, requiring specific instructions from government ministers to operate in this capacity.

Depending on the volume and value of transactions supported by UKEF, the UK government could potentially incur contingent liabilities of up to £3.5 billion over time. UKEF will evaluate transactions on a case-by-case basis in accordance with standard policy and practices, seeking written consent from ministers and HM Treasury before providing support for each transaction.

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