A G7-backed mechanism to leverage future revenues from frozen Russian assets has become the financial key to unlocking Ukraine’s massive new arms deals. President Volodymyr Zelensky confirmed in Paris that this innovative funding stream will be used to finance a “historical” 10-year pact with France, which includes a preliminary deal for 100 Rafale jets, air defense systems, and drones.
This financial strategy is a political and economic masterstroke, forcing Russia to, in effect, pay for the modernization of Ukraine’s military. The EU is still working to finalize the legal details, but the G7’s political support has given Ukraine the confidence to sign long-term, multi-billion-euro contracts. This is a critical development, as US aid has been halted by the Trump administration, leaving Ukraine entirely dependent on European and other creative funding sources.
The 10-year French pact this money will fund is a game-changer for Kyiv. It is a comprehensive package designed to defeat Russia’s air war, which has intensified with glide bomb and missile attacks. The 100 Dassault-made Rafales will provide a top-tier aerial capability, while the inclusion of eight “world-class” SAMP/T ground-based interceptor systems will help shield Ukrainian cities.
The agreement goes even further, including new radars and a plan for the joint production of interceptor drones. This forward-looking industrial cooperation aims to build up Ukraine’s own defense sector over the next decade.
While the Russian asset plan is central, it will be supplemented by other funds. The French presidency noted that the EU’s €150 billion Security Action for Europe (SAFE) loan fund will also be used, creating a blended and resilient financial package to support Ukraine for the long haul.