EU transferring new $1-billion tranche for Ukraine covered by frozen Russian assets
The EU is allocating another financial assistance tranche of 1 billion euros ($1.1 billion) as part of the G7 loan program for Ukraine, Prime Minister Denys Shmyhal announced on April 9.
"We are grateful to our partners for supporting the economy and the rapid recovery of our country," Shmyhal said after meeting EU Economy Commissioner Valdis Dombrovskis in Brussels.
Western nations froze around $300 billion in Russian assets after Moscow launched its full-scale invasion of Ukraine in February 2022, with roughly two-thirds held in Europe.
Kyiv has been urging its foreign partners to confiscate the assets and funnel them to Ukraine's defense and reconstruction efforts, but Western leaders have been hesitant to take the step, fearing legal, political, and economic pitfalls.
Instead, the G7 members agreed to provide Kyiv with a $50 billion Extraordinary Revenue Acceleration (ERA) loan, which will be repaid with proceeds from the frozen assets.
The EU is providing around 18.1 billion euros ($20 billion) as part of the loan, with another $20 billion shouldered by the U.S. and the rest by the U.K., Canada, and Japan.
"We are delivering on our promise to support Ukraine," Dombrovskis said. "This (aid) provides crucial financing to Ukraine and makes Russia pay for its aggression."
Dominic Culverwell
