Ukraine received the next €1 billion ($1.1 billion) tranche from the European Union under the G7-backed Extraordinary Revenue Acceleration (ERA) initiative, the Ukrainian Ministry of Finance reported on May 8.
According to the Ministry, Ukraine will use the disbursement for budgetary needs.
It is the fourth payment to Ukraine through the ERA, financed by interest income from frozen Russian sovereign assets. The assets were frozen following Russia’s full-scale invasion of Ukraine in February 2022. Ukraine still aims to get the principal €210 billion ($227 billion) in immobilized Russian central bank assets.
“I am grateful to our EU partners for their consistent and predictable support, which helps maintain Ukraine’s financial resilience. This will enable us to finance priority state budget expenditures. This mechanism ensures that Russia begins to pay for the damage it has inflicted on Ukraine,” Ukrainian Minister of Finance Sergii Marchenko said.
The EU’s total contribution to the ERA mechanism is expected to reach €18.1 billion ($20.5 billion) as part of a broader G7 commitment to deliver up to $50 billion in support to Ukraine through 2025.
Ukraine has already received €6 billion ($6.8 billion) from the EU under the ERA initiative. Additional tranches are expected to come by the end of the year. It will help ensure Ukraine’s budgetary needs in 2025-2026, the Ministry reported.
From all Ukraineʼs partners participating in ERA – European Union, USA, United Kingdom, Japan and Canada – it has received around $14.7 billion.
The ERA initiative is designed to repurpose profits generated from approximately €210 billion ($237 billion) in immobilized Russian central bank assets, most of which are held within the European Union. Revenues from these assets – estimated at €2.5-3 billion ($2.8-3.4 billion) annually depending on market rates – are redirected to support Ukraine without creating additional debt burden.
Unlike previous aid packages, funds under the ERA program are not loans and do not add to Ukraine’s external debt. Its key aim is to make Russia pay for its full-scale invasion of Ukraine.