EU sends Ukraine another €1B using frozen Russian assets
Photo: The EU has provided 1 billion euros to Ukraine (Getty Images)
The state budget of Ukraine received EUR 1 billion from the European Union. The funds are part of the EU's contribution to the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, according to the Ministry of Finance.
ERA provides for the allocation of $50 billion to Ukraine, which will be secured by future revenues from Russia's frozen assets. The EU's contribution is €18.1 billion ($20 billion).
In total, the European Union has already provided €8 billion under the ERA initiative.
"The funds will enable the financing of priority State Budget expenditures in the social and defense sectors, support macroeconomic stability, and help restore critically important infrastructure," said Sergii Marchenko, Minister of Finance of Ukraine.
Since February 2022, the European Union has been the largest provider of direct budgetary assistance to Ukraine, with EUR 53.5 billion for priority state budget expenditures.
International assistance
The National Bank of Ukraine expects to receive record amounts of external financial assistance this year (about $55 billion), primarily due to the faster transfer of tranches under the ERA Loans program.
This year's significant inflows will also allow Ukraine to increase its international reserves to USD 58 billion and further ensure the stability of the foreign exchange market.
