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EU allocates another €1 bln to Ukraine under G7 loan

20/03/2025

The European Commission has allocated another €1 billion in financial assistance to Ukraine. The funds are being provided as part of a G7 loan, which is set to be repaid using proceeds from frozen Russian assets.

“Today, the European Commission has disbursed an additional €1 billion tranche of its exceptional Macro-Financial Assistance (MFA) loan to Ukraine, to be repaid with proceeds from immobilised Russian State assets in the EU, reinforcing the EU’s role as the largest donor since the beginning of Russia’s war against Ukraine,” the statement reads.

In total, the macro-financial assistance amounts to €18.1 billion, representing the EU’s contribution to the ERA initiative led by the G7. This initiative aims to provide approximately €45 billion in financial support to Ukraine.

Ukrainian Prime Minister Denys Shmyhal confirmed that Ukraine received €1 billion from the EU under the ERA initiative. According to him, this is already the second tranche from the EU, secured by revenues from frozen Russian assets. These funds will be directed towards priority state budget expenditures.

“With today’s payment of €1 billion, we are reiterating our steadfast commitment to Ukraine. We are helping the country’s economy stay on course and rebuild critical infrastructure damaged by Russian aggression. We will keep supporting Ukraine as long as it takes,” said European Commission President Ursula von der Leyen.

According to the European Commission, since the beginning of Russia’s full-scale war against Ukraine, the EU has provided nearly €140 billion in aid, including:

  • €71.3 billion in financial and budgetary support and humanitarian aid;
  • €49.3 billion in military assistance to Ukraine through the European Peace Facility and additional contributions from EU member states;
  • €7 billion allocated to EU states to meet the needs of Ukrainian refugees;
  • €1.5 billion obtained from revenues related to frozen and immobilized Russian assets.

G7 loan for Ukraine

Ukraine has already started receiving funds from partner countries under the ERA program, an initiative of the G7 that provides financial assistance secured by proceeds from frozen Russian assets.

The first tranches from frozen Russian assets within the EU were received by Ukraine in January 2025. Additionally, the UK provided nearly $1 billion, secured by revenues from Russian assets.

Moreover, the Canadian government recently sent $1.7 billion to Ukraine as part of the G7 initiative.

rbc.ua

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