Ukraine receives €1bn loan from EU, secured by profits from frozen Russian assets
www.pravda.com.ua
Thu, 08 May 2025 14:01:16 +0300
The European Commission has made the fourth payment of macrofinancial assistance to Ukraine, amounting to 1 billion under the G7 Extraordinary Revenue Acceleration ERA initiative.
This initiative aims to provide financial resources to Ukraine using the profits from frozen Russian assets.
Source a statement by the European Commission, as reported by European Pravda Details The Commission emphasised that symbolically, the payment of this 1 billion coincided with the Day of Remembrance and Victory over Nazism.
In total, macrofinancial assistance stands at 18.1 billion, contributing to the EUs participation in the G7 Extraordinary Revenue Acceleration initiative.
This initiative is intended to provide Ukraine with around 45 billion in financial support.
These loans are to be repaid using the income generated from frozen Russian state assets in the EU.
With this payment, the total amount of loans to Ukraine from the Commission under this programme in 2025 has reached 6 billion.
Ukraines Prime Minister Denys Shmyhal stated that these funds would be directed toward covering critically important budget expenditures and strengthening the state. Quote from Shmyhal This tranche is part of a fair and consistent approach the aggressor must pay for the destruction they have brought to our land.
We are now expecting the next step the full confiscation of assets and the strengthening of sanctions in response to Russias atrocities.
Details The statement also highlighted that the European Commission is prepared to provide advance financing as part of the EUs contribution to the ERA initiative.
Background In 2024, the G7 agreed to jointly provide Ukraine with a US50 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 US20 billion US contribution.
In January 2025, it received the first 3 billion from the EU.
On 9 April, the European Union transferred a 1 billion loan tranche to Ukraine as part of the Extraordinary Revenue Acceleration ERA initiative.
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