Ukraine gets €4 billion EU tranche backed by frozen Russian assets

Ukraine on Wednesday received another €4 billion in macro-financial support from the European Union, the Finance Ministry said. The funds were provided through the ERA (Extraordinary Revenue Acceleration) loan mechanism, financed by proceeds from frozen assets of Russia’s central bank in the EU.

So far, Ukraine has received €14 billion of the planned €18.1 billion under the ERA facility. The remaining funds are expected by the end of 2025. The money will cover priority state budget needs, including social spending, defense, and reconstruction.

"Since February 2022, the EU has been Ukraine’s largest provider of direct budget support, totaling €62.5 billion. ERA funds have become an essential tool for meeting 2025 budget needs. I am grateful to the European Commission for its proactive stance. The further use of frozen Russian assets for Ukraine’s needs remains a key topic in our talks with EU partners," Finance Minister Sergii Marchenko said.

The ERA mechanism is designed to raise $50 billion for Ukraine, secured by income from frozen Russian assets, with €18.1 billion coming directly from the EU. Ukraine previously received a €1 billion tranche under ERA on September 10.

In 2024, the G7 agreed to use interest from frozen Russian assets to back loans for Ukraine. European governments are now working on a new legal framework to provide up to €140 billion in interest-free support using those assets.