EU pushes allies to accelerate Ukraine loan payouts

Brussels is urging Western partners to speed up disbursements under a €45 billion loan package for Ukraine, as the country faces mounting financial pressure amid its ongoing war with Russia.

EU Economy Commissioner Valdis Dombrovskis is expected to press officials from Japan, the United Kingdom, and the United States to accelerate payments under the so-called Extraordinary Revenue Acceleration (ERA) loan during a visit to Washington this week, Euroactiv reports. 

The €45 billion scheme, agreed in 2024 by the G7, is backed by immobilised Russian central bank assets held at Euroclear. The European Union has already fully contributed its €18.1 billion share, while around €7 billion remains undisbursed by other partners, including Japan, the UK, and the US.

Dombrovskis is attending the International Monetary Fund and World Bank Spring Meetings in Washington and is scheduled to meet US Treasury Secretary Scott Bessent and Ukrainian Finance Minister Serhiy Marchenko during the visit.

The renewed diplomatic push follows repeated EU efforts to encourage faster payouts from partner countries, as Brussels seeks to close Ukraine’s financing gap.

The initiative comes amid wider uncertainty over additional European funding packages. A separate €90 billion EU loan proposal for Ukraine has faced political obstacles, including opposition from Hungarian Prime Minister Viktor Orbán. However, Hungarian opposition leader Péter Magyar has suggested he may lift the veto if political conditions change following recent electoral developments.

EU officials warn that procedural constraints and domestic political dynamics in Hungary could delay any potential disbursement until early May, while Ukraine is projected to face a fiscal shortfall by mid-July.

According to European Commission estimates, Ukraine requires around €135 billion in budgetary and military financing for 2026–2027. Brussels and its partners are working to mobilise additional international contributions, though only around €15 billion of the needed €45 billion gap has been secured so far.

By Sabina Mammadli