Ukraine receives first €3 billion from EU as part of US$50 billion G7 loan
Ukraine has received the first tranche of €3 billion from the amount allocated by the European Union for a joint loan from the G7 to Ukraine, which will be repaid using proceeds from frozen Russian assets.
"Today, we deliver €3 billion to Ukraine, the first payment of the EU part of the G7 loan. Giving Ukraine the financial power to continue fighting for its freedom – and prevail," Ursula von der Leyen, President of the European Commission, wrote on X (Twitter).
Almost 3 years into Russia’s war of aggression, Ukraine can keep counting on its friends and partners.
– Ursula von der Leyen (@vonderleyen) January 10, 2025
Today, we deliver €3 billion to Ukraine, the 1st payment of the EU part of the G7 loan.
Giving Ukraine the financial power to continue fighting for its freedom – and prevail. pic.twitter.com/W9l7K1kfiV
The total amount to be provided by the EU under the G7 loan is about €18 billion.
On behalf of Ukraine, I express my deepest gratitude to President @vonderleyen and Commissioner @VDombrovskis for the disbursement of the first €3 billion tranche of the €18.1 billion exceptional Macro-Financial Assistance package. This MFA, part of the G7-led Extraordinary…
– Denys Shmyhal (@Denys_Shmyhal) January 10, 2025
Prime Minister of Ukraine Denys Shmyhal thanked the EU for the first tranche.
"This macro-financial assistance package, part of the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative, funded by immobilised Russian assets, demonstrates the EU’s unwavering commitment to helping Ukraine confront Russia’s war of aggression, maintain macroeconomic stability and rebuild critical infrastructure," Shmyhal said.
In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan from Russian assets. The funds will be provided formally as a loan but repaid from the proceeds of frozen Russian assets.
At the end of December, Ukraine received the first tranche of the planned US$20 billion from the United States.
The European funds under the G7 loan using Russian assets will be in addition to the disbursements under the €50 billion multi-year EU financial assistance programme for Ukraine (Ukraine Facility) approved last winter, which Ukraine receives in tranches under the obligation to implement the approved reform plan (Ukraine Plan).