Ukraine received €3 billion from the EU at the expense of frozen Russian assets

The state budget of Ukraine has received €3 billion from the European Union as part of the ERA

initiative, a financial mechanism worth up to €45 billion. The money is being transferred as a loan, but will be repaid from future profits received from frozen Russian assets.

This was announced by Prime Minister Denys Shmyhal and Head of European Diplomacy Kai Kallas.

This is the first tranche from the European Union, which is secured by revenues from Russian frozen assets. Ukraine will direct the money to priority budget expenditures.

"Russia started this war, so it must pay for it... This will support Ukraineʼs economy and free up Ukrainian money for defense," Kaia Kallas emphasized.

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. The money is the blocʼs contribution to a G7 initiative to provide Ukraine with a $50 billion (€45 billion) loan, to be repaid with the proceeds from frozen Russian assets. The US contributed $20 billion (€18 billion) to the initiative.

The funds are being 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 money under the loan by the end of 2027.

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