The Ukrainian state budget received 3 billion euros from the EU under the ERA initiative, which aims to provide Ukraine with funds from frozen Russian assets.
"This is the first tranche of funds from the European Union, secured by income from frozen Russian assets. Ukraine will allocate this resource for priority budget expenditures," - reported Prime Minister Denys Shmyhal.
He noted that the overall G7 ERA initiative involves directing 50 billion dollars to Ukraine, of which 20 billion dollars will be provided by the European Union.
"Thus, we are realizing the principle 'Russia will pay' and strengthening Ukraine's financial stability in 2025," - emphasized Shmyhal.
The Ministry of Finance noted that the frozen assets of the Central Bank of Russia in the EU amount to 210 billion euros and represent the majority of such immobilized assets worldwide, according to official EU data. Depending on the interest rates, the income from these assets is currently estimated at 2.5-3 billion euros per year.
"The ERA provides for directing 50 billion US dollars to Ukraine, which will be secured by future income from frozen Russian assets. The EU's contribution amounts to 18.1 billion euros (20 billion US dollars). It is expected that funds from the European Union will be disbursed in installments until the end of 2025," - the ministry's statement said.
Utilization of Funds from Frozen Russian Assets
In December, Ukraine and the EU signed an agreement on the use of income from frozen Russian assets. This mechanism will create a legal framework for servicing and repaying the funds received by Ukraine, which could reach up to 45 billion euros.
On December 24, Ukraine received a grant from the USA of 1 billion dollars. This marks the first time that funds secured by income from frozen Russian assets have entered the state budget.