On October 1, the Ministry of Finance of Ukraine officially confirmed that Kyiv had received a tranche of 4 billion euros from the European Union. It is important to understand that this happened within the framework of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative.
Points of attention
- The proactive use of frozen Russian assets serves as a vital tool in assisting Ukraine's budgetary needs, with ongoing discussions on further financial aid.
- The Ministry of Finance of Ukraine highlights the importance of ERA in addressing Ukraine's financial requirements and anticipates receiving the remaining funds from the EU by 2025.
Financial support for Ukraine continues
The Ministry of Finance draws attention to the fact that it was thanks to the ERA instrument that it was possible to successfully attract 14 billion euros out of the planned 18.1 billion euros.
Official Kyiv expects that Ukraine will receive the remaining funds from the EU by the end of 2025.
The new large-scale tranche can be directed to priority state budget expenditures in the social sphere, military, and reconstruction.
The head of the Ministry of Finance of Ukraine, Serhiy Marchenko, has already made a statement on this matter.
According to him, the European Union has been the largest provider of direct budget assistance to Ukraine since February 2022. What is important to understand is that we are talking about 62.5 billion euros.
ERA funds have become an important tool for ensuring budgetary needs in 2025. I am grateful to the European Commission for understanding Ukraine's needs and taking a proactive position on this issue. The further use of frozen Russian assets for Ukraine's needs remains on the agenda of meetings with European colleagues.
Serhiy Marchenko
Head of the Ministry of Finance of Ukraine
As mentioned earlier, the key goal of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism is to provide Kyiv with a loan that is repaid from the profits generated from frozen Russian sovereign assets.
