Ukraine receives additional €4bn EU loan financed by proceeds from frozen Russian assets

Ukraine received a €4 billion tranche from the EU under the G7's Extraordinary Revenue Acceleration for Ukraine (ERA) initiative on 1 October.

As reported by the Ukrainian Ministry of Finance, overall, under the ERA instrument, the Ministry of Finance has secured €14 billion from the European Union out of the planned €18.1 billion.

The remaining funds from the EU are expected to be received by the end of 2025.

The financing can be directed towards priority state budget expenditures in the social and military sectors and reconstruction.

"Since February 2022, the European Union has been the largest provider of direct budgetary support to Ukraine – €62.5 billion. The ERA funds have become an important tool to meet budgetary needs in 2025," said Finance Minister Serhii Marchenko.

The G7's ERA mechanism, worth up to US$50 billion, provides Ukraine with a loan to be repaid from revenues generated by frozen Russian sovereign assets.

In 2024-2025, the G7 countries and the EU have provided Ukraine with nearly US$28 billion in financing through ERA.

Ukraine received the previous EU macro-financial assistance tranche of €1 billion under the ERA programme on 10 September.

Meanwhile, the EU is considering a new decision on military financing for Ukraine based on frozen Russian assets.