EU to allocate $36 billion of financial support to Ukraine
The European Union will provide 35 billion euros ($36 billion) in financial assistance to Ukraine in 2025 through the G7 Extraordinary Revenue Acceleration (ERA) credit initiative and the Ukraine Facility program, European Commission's vice-president and trade commissioner announced on Jan. 22.
Great to meet with @Svyrydenko_Y, Ukraine’s First Deputy PM, at #Davos2025. We discussed enlargement and steps to bring 🇺🇦 closer to the 🇪🇺EU’s Single Market. The EU is delivering financial support through the G7 ERA loan initiative and the Ukraine Facility, with €35bn for 2025. pic.twitter.com/iHQpg6kl1I
— Valdis Dombrovskis (@VDombrovskis) January 22, 2025
On Jan. 10, Ukraine received three billion euros ($3 .09 billion) from the EU, the first tranche of loans from the bloc funded by proceeds of frozen Russian assets.
The money has been provided through the ERA initiative, in which G7 countries pledged to provide Ukraine with almost $50 billion loan, with the EU contributing around $20 billion.
In December 2024, the U.S. Treasury Department announced a $20 billion loan to Ukraine as part of the ERA initiative, backed by the proceeds from approximately $300 billion in frozen Russian assets, primarily held in European countries, with smaller amounts in the United States and Japan.
The Ukraine Facility mentioned by Dombrovskis is a pivotal financial assistance program established by the European Union in February 2024 to support Ukraine from 2024 to 2027. In November, the European Commission agreed to allocate 4.1 billion euros ($4.3 billion) under the program aimed to help the Ukrainian government's tasks for recovery, reconstruction, and modernization.
Tim Zadorozhnyy
