Ukraine receives €1 billion in EU aid funded by frozen Russian assets

Ukrainian Prime Minister Denys Shmyhal announced that Ukraine has received a further €1 billion in macro-financial assistance from the European Union, part of a broader support package funded by the profits from frozen Russian assets.

Shmyhal confirmed on social media that the disbursement marks the fifth tranche under the EU's Ukraine Facility program, also known as the ERA (Extraordinary Revenue Accumulation) initiative, Caliber.Az reports, citing Ukrainian media.

The funds will be directed toward covering essential state budget expenditures.

Shmyhal said that €1 billion was the fifth tranche of macro-financial aid from the EU under the ERA initiative.

To date, Ukraine has received a total of €7 billion under the ERA initiative, with future tranches expected in the coming months. The ERA mechanism is underpinned by interest revenues and profits generated from approximately €300 billion in Russian sovereign assets frozen across EU member states following Moscow’s full-scale invasion in 2022.

In the longer term, the EU has signaled its intent to allocate up to €9 billion in 2025 specifically for military assistance to Ukraine, also sourced from the income generated by these frozen assets.

By Vafa Guliyeva