Ukraine received another tranche of financial assistance from the European Union in the amount of €1 billion. These funds were withdrawn from the proceeds of frozen Russian assets.
This was reported by Prime Minister of Ukraine Yulia Svyrydenko in a telegram.
Under the ERA Loans program, the EU provided funds to Ukraine from the proceeds of frozen assets of the Central Bank of Russia.
"This is more than aid — it is a clear signal: Europe is resolutely strengthening Ukraineʼs defense and resilience against massive missile attacks and attempts at destabilization," Svyrydenko 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. 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 European Commission on August 29 began developing a mechanism to transfer almost €200 billion of frozen Russian assets. The EU is considering transferring the assets to a “special purpose holding company” supported by the G7 countries. The €18 billion from the EU will be paid in full by the end of the year — which is why they are again looking for a new solution regarding frozen Russian assets.
The UK government on September 4 directed £1 billion from the proceeds of frozen Russian assets to purchase military aid for Ukraine.
The head of Belgiumʼs Foreign Ministry said on September 5 that the country would not transfer proceeds from frozen Russian assets to aid Ukraine because it would jeopardize Belgiumʼs reputation as a financial services center.
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