EU commits €1 billion (£840 million) to Ukrainian reconstruction efforts
The European Commission has issued another instalment of financial aid to Ukraine, totalling €1 billion (£840 million) as part of an exceptional G7 state loan. The loan, amounting to €45 billion (£38 billion), is to be repaid from the revenues of frozen Russian assets.
This funding is intended to assist Ukraine in meeting its urgent budgetary needs, encompassing economic and military aspects, and will be directed towards the reconstruction of critical infrastructure destroyed by the Russians, including energy, water, and transport networks such as roads and bridges.
The instalment of €1 billion (£870 million) disbursed by the EC on Thursday is part of the EU's contribution to the G7 loan of €18.1 billion (£15.1 billion). In total, the so-called ERA (Extraordinary Revenue Acceleration), the loan proposed to Ukraine by the G7 countries, amounts to €45 billion (£38 billion) 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.
Together with today's transfer, the EC has already provided Ukraine with €4 billion (£3.4 billion) from the G7 loan since the start of the year. As the EC has indicated, talks are ongoing with Kyiv concerning the schedule of future disbursements. These funds – as assured by the institution – will reach Ukraine according to the country's needs, following the call from EU member state leaders at the beginning of March during a special European Council session focused on defence.
Rebuild critical infrastructure
EC President Ursula von der Leyen highlighted in a statement that Thursday's 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," she emphasised.
Since the beginning of Russia's full-scale invasion of Ukraine in February 2022, the European Union has provided nearly €140 billion (£117 billion) in support to Ukraine, including €49.3 billion (£41.2 billion) for military aid from the European Peace Facility.
