Frozen Russian assets and EU funds may be merged: Details

Ukrainian Prime Minister Denys Shmyhal met with Valdis Dombrovskis, the EU Commissioner for Economic and Productivity, who recently took up his new post.

While discussing the creation of a long-term mechanism for Ukraine's recovery based on the Marshall Plan principle, the Ukrainian side proposed to combine frozen Russian assets and EU funds.

According to Shmyhal, this would allow European companies to be involved in the country's reconstruction on mutually beneficial terms.

The parties also discussed other issues of cooperation and economic support:

• Financial assistance. The European Union confirmed the provision of macro-financial assistance to Ukraine in the amount of EUR 18.1 billion as part of the G7 Revenue Acceleration Initiative. The first tranche is expected to be disbursed in January 2025.
• Ukraine Facility. Ukraine has received €16 billion to stabilize its economy, support reforms, and address urgent needs. This was made possible by the EU's financial mechanism.
• Intergovernmental consultations. An agreement was reached to hold intergovernmental consultations with the EU in early 2025 to coordinate further cooperation in the economic, humanitarian, and military spheres.

Shmyhal also thanked Dombrovskis for his contribution to the development of relations between Ukraine and the EU.

In addition, the Commissioner assured of further humanitarian, military, and economic support for Ukraine from the EU.

Ukraine recently received a tranche of EUR 4.1 billion from the EU.

EU diplomat Kaja Kallas announced that starting next year, European countries will allocate 1.5 billion euros per month for the restoration of Ukraine.