EU continues financial support for Ukraine's urgent recovery
The European Commission has disbursed another installment of financial aid to Ukraine, amounting to 1 billion euros (1,5 billion Canadian dollars) as part of an exceptional G7 state loan. The loan, totaling 45 billion euros (70 billion Canadian dollars), is to be repaid from the revenues of frozen Russian assets.
This money is intended to help Ukraine meet its urgent budgetary needs, both economic and military, and it will be allocated for the reconstruction of critical infrastructure destroyed by Russian forces, including energy, water, and transportation networks like roads and bridges.
The installment of 1 billion euros (1.5 billion Canadian dollars) disbursed by the EC on Thursday is part of the EU's contribution to the G7 loan of 18.1 billion euros (28.2 billion Canadian dollars). In total, the so-called ERA (Extraordinary Revenue Acceleration), the loan proposed to Ukraine by the G7 countries, amounts to 45 billion euros (70 billion Canadian dollars) and will be repaid from the revenues of frozen Russian assets.
The ERA initiative makes Russia pay for its aggression by using the proceeds of immobilised Russian state assets to repay the loans provided, wrote EU Commissioner for Economic Affairs Valdis Dombrovskis in a statement.
With today's transfer, the EC has already provided Ukraine with 4 billion euros (6.2 billion Canadian dollars) from the G7 loan since the beginning of the year. The EC has informed that talks are ongoing with Kyiv regarding the schedule of subsequent disbursements. These funds—as assured by the institution—will reach Ukraine according to the country's needs. EU member state leaders urged the EC to meet these needs at the beginning of March during a special session of the European Council dedicated to defence.
Rebuilding critical infrastructure
EC President Ursula von der Leyen highlighted in a statement that the Thursday disbursement " confirms the EU's "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."
Since the beginning of Russia's full-scale invasion of Ukraine in February 2022, the European Union has provided nearly 140 billion euros (218 billion Canadian dollars) in support to Ukraine, including 49.3 billion euros (76.8 billion Canadian dollars) for military aid from the European Peace Facility.
