European Commission allocates additional €1 bln to Ukraine under G7 loan framework

The European Commission provides Ukraine with another €1 billion. The funds are allocated as part of a G7 loan to be repaid from proceeds from frozen Russian assets.

The European Commission's press service reports this.

"Today, the European Commission has disbursed an additional €1 billion tranche of its exceptional Macro-Financial Assistance (MFA) loan to Ukraine, to be repaid with proceeds from immobilized Russian State assets in the EU, reinforcing the EU's role as the largest donor since the beginning of Russia's war against Ukraine," the statement said.

The macro-financial assistance amounts to €18.1 billion, the EU's contribution to the ERA initiative led by the G7.

The G7 initiative aims to provide Ukraine with approximately €45 billion in financial support.

Ukraine has already received €4 billion from the EU under this loan this year.

Prime Minister of Ukraine Denys Shmyhal confirmed that Ukraine has received 1 billion euros from the European Union within the framework of the ERA initiative. According to him, this is the second tranche from the EU, secured by revenues from frozen Russian assets. The funds will be directed to priority state budget expenditures.

"With today's payment of €1 billion, we are reiterating our steadfast commitment to Ukraine. We are helping the country's economy stay on course and rebuild critical infrastructure damaged by Russian aggression. 

We will keep supporting Ukraine as long as it takes," European Commission President Ursula von der Leyen said.

As the European Commission notes, since the start of Russia's full-scale war against Ukraine, the EU has provided assistance totaling almost €140 billion, including:

• €71.3 billion in financial and budgetary support and humanitarian aid;
• €49.3 billion in military assistance to Ukraine under the European Peace Facility and by Member States separately;
• €7 billion provided to Member States to meet the needs of refugees;
• €1.5 billion received from proceeds related to frozen and immobilized Russian assets.

For reference:

Ukraine has already started receiving funds from partner countries under the ERA program. This initiative of the G7 countries involves Ukraine receiving funds secured by proceeds from frozen Russian assets.

Ukraine received the first tranches of frozen Russian assets from the European Union in January 2025. Ukraine has also received almost $1 billion from Britain, probably from the proceeds of Russian assets.

In addition, the Canadian government recently sent $1.7 billion to Ukraine as part of the G7 initiative.