EU transfers €1bn loan to Ukraine from frozen Russian assets
The European Union has transferred a €1 billion loan tranche to Ukraine as part of the Extraordinary Revenue Acceleration (ERA) initiative, funded by proceeds from frozen Russian assets.
Source: Ukraine's Prime Minister Denys Shmyhal, as reported by European Pravda
Details: Shmyhal stated that the funds were provided through a G7 mechanism and secured using revenues generated from frozen Russian assets. The money will be allocated to priority expenditures of Ukraine’s state budget.
He added that under the ERA programme, European partners have already provided a total of €5 billion to Ukraine.
During a meeting in Brussels with European Commissioner Valdis Dombrovskis on Wednesday, Shmyhal emphasised that Ukraine’s key objective is the full confiscation of frozen Russian sovereign assets to be used for the country’s recovery.
Background:
- In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan backed by Russian assets. Though formally disbursed as credit, the funds are to be repaid using interest accrued from the frozen assets.
- At the end of December 2024, Ukraine received the first tranche of the planned US$20 billion US contribution. In January 2025, it received the first €3 billion from the EU.
- On 7 March, Ukraine received its first G7 loan payment from the United Kingdom – £752 million (approx. US$971.9 million).
- On 13 March, Canada transferred CAD 2.5 billion (approx. US$1.7 billion) to Ukraine under the same G7-backed loan framework.
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