The EU transferred another €1 billion to Ukraine at the expense of Russian assets

Ukraine received another €1 billion from the European Union from proceeds from frozen Russian assets.

This was declared by Prime Minister Denys Shmyhal.

This is the fifth tranche of macro-financial assistance from the European Union under the ERA initiative. The money will go towards key state budget expenditures.

The ERA (Extraordinary Revenue Acceleration) initiative is a joint program of the G7 countries aimed at supporting Ukraine. Its essence is to use the proceeds from frozen Russian assets to repay loans that the G7 countries provide to Ukraine. The total amount of the program is $50 billion, part of which will be used to meet defense needs.

In total, Ukraine has already received €7 billion from the European Union under this initiative.

Frozen Russian assets

The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash.

In October 2024, the EU Council finally approved a loan of up to €35 billion to Ukraine. This money is the blocʼs contribution to the G7 initiative to provide Ukraine with a $50 billion (€45 billion) loan, which will be repaid with the proceeds from frozen Russian assets.

A few days after the EU Council decision, the G7 countries agreed to a $50 billion loan for Ukraine using proceeds from Russiaʼs frozen assets. The US contribution was $20 billion.

The money will be transferred “through various channels” — both to replenish the Ukrainian budget, and for military assistance and the restoration of Ukraine’s infrastructure. Reuters notes that Ukraine will receive all the funds under the loan by the end of 2027.

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