The EU transferred €1 billion from the proceeds of frozen assets of the Central Bank of Russia to Ukraine
8 May 14:51
The European Union has transferred a tranche of 1 billion euros to Ukraine, which was formed from the proceeds of the frozen assets of the Central Bank of Russia. This was announced by Prime Minister Denys Shmyhal, reports "Komersant Ukrainian"
The funds will be used to finance critical budget items and strengthen state resilience.
“We thank the EU and the G7 countries for an effective mechanism. The next step is the complete confiscation of Russian assets and tougher sanctions in response to Russia’s war crimes,” Shmyhal added.
This funding is provided under the Extraordinary Revenue Acceleration (ERA) program implemented by the G7 countries. In total, Ukraine expects about $50 billion in aid, which will be secured by future profits from frozen sovereign Russian assets under the jurisdiction of the EU and other countries.
According to the Ministry of Finance, the total amount of such assets in the G7 countries is about $280 billion. They will remain blocked until Russia compensates for the damage caused by the war against Ukraine.
What do officials say?
Ukraine’s Prime Minister Denys Shmyhal said that these funds will be used to cover critical budget expenditures and strengthen the state.
He also expressed gratitude to the EU and G7 partners for the effective support mechanism and emphasized his expectations for the complete confiscation of Russian assets and tougher sanctions in response to Russia’s aggression.
European Commissioner Valdis Dombrovskis confirmed that the EU continues to support Ukraine politically, financially, economically and militarily.
Total amount of assistance
The total amount of EU macro-financial assistance to Ukraine under the ERA program is 18.1 billion euros.
Prior to this, Ukraine has already received three tranches of EUR 1 billion each in 2025.
Legal aspects
While the full confiscation of frozen Russian assets remains legally challenging due to the principles of sovereign immunity, the use of the proceeds of these assets to support Ukraine is considered legal and is the subject of discussion in the EU.
