EC pays first 3B euro to Ukraine of its part of G7 loan, to be repaid with proceeds from immobilised Russian assets
The European Commission (EC) said on January 10 that it had paid out today the first three billion euro tranche of its exceptional Macro-Financial Assistance (MFA) loan for Ukraine, which will be repaid with proceeds from immobilised Russian State assets in the EU.
The loan, amounting up to 18.1 billion euro, represents the EU’s contribution to the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative, which collectively aims to provide about 45 billion euro in financial support to Ukraine, the EC said.
“This initial disbursement highlights the EU’s unwavering commitment to helping Ukraine confront Russia’s full-scale war of aggression, maintain macroeconomic and fiscal stability, rebuild vital infrastructure, including its energy systems, and invest in defence infrastructure,” the statement said.
This MFA is crucial for addressing Ukraine’s urgent budgetary needs, which have considerably risen in the face of Russia’s intensified and prolonged war of aggression, it said.
The EC said that with the stable, regular, and predictable financial support of up to 18.1 billion euro for 2025 under this instrument, Ukraine will be able to support its current and future military, budget and reconstruction needs.
“This loan will be able to ensure macroeconomic stability and restore critical infrastructure destroyed by Russia, such as energy infrastructure, water systems, transport networks, roads and bridges.”
The loan can be used by Ukraine to directly support its military expenses.
At the same time, by stabilising public finances, this assistance will also enable Ukraine to allocate resources to other priority expenditures, including military defence infrastructure against Russian aggression, the EC said.
Since the beginning of Russia’s war of aggression against Ukraine, the EU, together with its member states, has unequivocally condemned Russia’s actions and has offered unprecedented support to Ukraine and its people, the Commission said.
“With this MFA disbursement, the EU, its Member States and European Financial Institutions have together provided nearly 134 billion euro, supporting the Ukrainian war effort and its economy, helping maintain basic services and offer early reconstruction, humanitarian assistance and help to those fleeing the war in the EU,” it said.
(Photo: Miroslav Saricka)
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