EU Provides Additional €1 Billion to Ukraine from Frozen Russian Assets
On 8 May, the European Commission disbursed the fourth tranche of macro-financial assistance to Ukraine in the amount of €1 billion under the G7 Extraordinary Revenue Acceleration (ERA) initiative, which provides Kyiv with financial resources from the proceeds of frozen Russian assets.
The Gaze reports on this with reference to the official announcement of the institution.
The European Commission stressed that symbolically, the disbursement of the €1 billion tranche of macro-financial assistance to Ukraine coincides with the Day of Remembrance and Victory over Nazism in World War II.
In total, the macro-financial assistance amounts to €18.1 billion and is the EU's contribution to the G7's Extraordinary Revenue Acceleration (ERA) initiative, which aims to provide Ukraine with a total of €45 billion in financial support.
These loans are to be repaid from the proceeds of Russia's frozen state assets in the EU. With this disbursement, the Commission's total lending to Ukraine under this programme in 2025 will reach €6 billion.
The Prime Minister of Ukraine, Denys Shmyhal, said that these funds will be used to cover critical budget expenditures and strengthen the state.
‘This tranche is part of a fair and consistent approach: the aggressor must pay for the destruction it has brought to our land. We are looking forward to the next step - full confiscation of assets and tougher sanctions in response to Russia's atrocities,’ he wrote.
The statement also stressed that the European Commission is ready to provide upfront funding as part of the EU's contribution to the ERA initiative, if necessary.
In 2024, the G7 agreed to jointly provide Ukraine with a $50 billion loan from Russian assets: the funds will be provided formally as a loan, but will be repaid from the proceeds of frozen Russian assets.
At the end of December 2024, Ukraine received the first tranche of the planned $20 billion US contribution from the United States, and in January 2025, the first €3 billion from the EU.
On 7 March, Ukraine received the first disbursement of funds from the United Kingdom under the G7 loan using proceeds from Russia's frozen assets - £752 million (about $971.9 million).
And on 13 March, Ukraine received C$2.5bn (about $1.7bn) under the G7 ERA initiative.
As The Gaze reported earlier, in March, Ukraine received another €1 billion from the European Union under the ERA initiative. This tranche was repaid from the proceeds of Russian state assets frozen in the EU.