EU transfers additional €1 billion to Ukraine from frozen Russian assets

Photo: Prime Minister Denys Shmyhal (Vitalii Nosach/RBC-Ukraine)

The European Union has transferred an additional €1 billion to Ukraine under the G7’s Extraordinary Revenue Acceleration (ERA) initiative, with the funds sourced from profits generated by frozen Russian sovereign assets, Ukrainian Prime Minister Denys Shmyhal reports. RBC-Ukraine informs.

"This is the third tranche under the G7 initiative, secured through revenue from frozen Russian assets. The funds will be allocated to our top budgetary needs," Shmyhal stated.

According to the Ukrainian Prime Minister, his state has now received a total of €5 billion through the ERA mechanism from its European partners.

Shmyhal stated that the announcement about the tranche was made during his meeting with the EU Commissioner for Economy and Productivity Valdis Dombrovskis in Brussels.

"I emphasized at the meeting that our priority is the full confiscation of frozen Russian sovereign assets, which must be used as a resource for the reconstruction of Ukraine. We paid special attention to this issue," Shmyhal noted.

G7 mechanism

The mechanism provides for receiving $50 billion from the G7 countries with subsequent repayment through revenues generated from the use of frozen Russian assets.

Ukraine plans to receive $20 billion from the USA, $20 billion from the EU, $3 billion from the United Kingdom, $3.7 billion from Canada, and $3 billion from Japan.

The key feature of the program is the possibility of directing part of these funds (from the EU and the United Kingdom) directly to defense needs.

In March, Ukraine received $5.172 billion from international partners, including under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative. These funds were credited to the reserves.

In addition, Ukraine received a $970 million loan under an agreement between Ukraine and the United Kingdom as part of the ERA. These funds were not credited to Ukraine's international reserves due to their restricted (targeted) purpose for use.

Нагадаємо: Трамп вимагає від Європи фінансових репарацій.