EU boosts Ukraine aid with another €1b ($1,1b) for rebuilding
The European Commission has disbursed another installment of financial aid to Ukraine, amounting to 1 billion euros (1,1 billion dollars) as part of an exceptional G7 state loan. The loan, totaling 45 billion euros (49 billion dollars), is to be repaid using revenues from frozen Russian assets.
This money aims to help Ukraine address its urgent budgetary needs, both economic and military, and will be allocated for the reconstruction of critical infrastructure destroyed by Russian forces, including energy, water, and transportation networks such as roads and bridges.
The 1 billion euros (1,1 billion dollars) disbursed by the European Commission on Thursday is part of the EU's contribution to the G7 loan, which totals 18.1 billion euros (19.6 billion dollars). In total, the so-called ERA (Extraordinary Revenue Acceleration), the loan proposed to Ukraine by the G7 countries, amounts to 45 billion euros (49 billion dollars) and is to be repaid using revenues from 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 European Commission has already provided Ukraine with 4 billion euros (4.3 billion dollars) from the G7 loan since the beginning of the year. The Commission has informed that discussions are ongoing with Kyiv regarding the schedule of subsequent disbursements. These funds, as assured by the institution, will be sent to Ukraine according to the country's needs. This aligns with the call made by the leaders of the EU member states to the European Commission at the beginning of March during a special session of the European Council focused on defense.
Rebuild critical infrastructure
European Commission President Ursula von der Leyen emphasized in a statement that Thursday's disbursement confirms the EU's "unprecedented support to Ukraine and its people." She stated, "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 (151 billion dollars) in support to Ukraine, including 49.3 billion euros (53.3 billion dollars) designated for military aid from the European Peace Facility.
