Ukraine gets €1 billion from frozen Russian assets
Ukraine is expected to receive $50 billion in loans, which will be repaid using future profits from these frozen Russian assets, The Kyiv Independent notes.
Ukraine is receiving funds from frozen Russian assets through the Group of Seven (G7)'s Extraordinary Revenue Acceleration (ERA) mechanism.
According to Shmyhal, Ukraine has already received over $18.5 billion from frozen Russian assets this year, directing the money towards rapid recovery projects.
At the Ukraine Recovery Conference in Rome on July 10 and 11, the Ukrainian delegation will urge international partners to jointly develop legal mechanisms for the complete confiscation of Russian assets, Shmyhal added.
Since Russia's full-scale invasion in 2022, G7 countries have frozen approximately $300 billion in Russian sovereign assets.
The ERA initiative, primarily supported by the U.S. and the EU, aims to use the profits from these frozen assets to finance Ukraine's defense and reconstruction. Ukraine is expected to receive all funds from this initiative by the end of 2027.
The EU's contribution to the ERA initiative amounts to €18.1 billion, with a comparable sum provided by the United States. The United Kingdom, Canada, and Japan are supplying the remainder of the total amount.
Kyiv estimates the cost of Ukraine's reconstruction after more than three years of war at €850 billion over a 14-year period, Ukrainian Prime Minister Denys Shmyhal stated on Thursday, July 10.
Translation by Iurie Tataru
