Ukraine secures $1B EU loan, to be repaid using Russian assets: PM
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Ukraine received a 1 billion euro EU loan under the G7's ERA initiative, to be repaid using profits from frozen Russian assets. Russia condemned the move as theft.
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European Union foreign policy chief Kaja Kallas, right, shakes hands with Ukraine's Prime Minister Denys Shmyhal during the EU-Ukraine Association Council at the European Council building in Brussels, Wednesday, April 9, 2025 (AP)
Ukraine has received a new loan from the European Union, set to be repaid with proceeds from frozen Russian Assets, the Ukrainian Prime Minister announced on Wednesday.
Ukraine has received another 1 billion euros ($1.1 billion) in loans from the European Union to be repaid using proceeds from Russia's frozen assets, Ukrainian Prime Minister Denys Shmyhal said on Wednesday.
The European Commission announced on March 20 that it had allocated 1 billion euros to Ukraine as part of a G7 loan expected to be repaid with profits from frozen Russian assets
"The EU has delivered 1 billion euros to Ukraine within the ERA [Extraordinary Revenue Acceleration] initiative ... It is the third transaction within the G7 initiative with repayment via profits from Russia’s frozen assets. the PM announced, "The money will be allocated to priority state budget expenses. Overall, within the ERA initiative, the European allies have provided 5 billion euros to Ukraine," he added on his Telegram channel.
The Russian Foreign Ministry has repeatedly denounced the freezing of Russia's sovereign funds in Europe as theft, while Russian Foreign Minister Sergey Lavrov said that Moscow could respond by withholding assets held in Russia by Western countries
EU to maintain pressure on Russia, keep assets frozen
Previously, the European Union held a summit, where it reaffirmed that the EU remains committed to maintaining pressure on Russia through further sanctions and strengthened enforcement of existing measures aimed at weakening Moscow's capacity to sustain the conflict with Ukraine, while also stating that Russian assets will remain frozen under EU law.
While 26 of 27 EU member states signed the conclusion, the signatories reiterated their "peace through strength" approach aimed at ensuring that Ukraine maintains the strongest possible position with its own robust military and defense capabilities as an essential component.
In the same context, EU foreign policy chief Kaja Kallas urged EU leaders to turn their verbal support for Ukraine into concrete actions by emphasizing the need for actual military aid, including ammunition, to support Ukraine in its defense.
While some EU leaders have expressed their support for Ukraine, Kaja Kallas emphasized the need for actions to align with words, noting that a realistic plan would involve 5 billion euros for ammunition and that this is what they are currently working on.
