EU: In Ukraine the first loan tranche to finance ‘freezing’ Russian assets

The Commission has announced today (10.01.2025) that the Commission has completed the disbursement of the first tranche of EUR 3 billion from the loan financed by the extraordinary proceeds of frozen Russian assets in Europe. In particular, the European Commission announced that today the first tranche of EUR 3 billion of the macro-financial assistance (MFA) loan for Ukraine was disbursed, which will be repaid with revenue from the immobilised Russian state assets in the EU. This loan, up to EUR 18.1 billion , represents the EU’s contribution to the Loan Initiative (ERA) under the leadership of G7, which collectively aims to provide around EUR 45 billion in financial support to Ukraine . “Russia started war in Ukraine and should pay the price”. Russia started this war so Russia must pay the price of it. Today Ukraine will receive €3 billion from our G7 loan which will be repaid with the proceeds from Russian Frozen assets. This will support Ukraine’s economy and free up Ukrainian money for defence. MISCELLANEOUS — Kaja Kallas (@kajakallas) For her part, the President of the Commission, Ursula von der Leien, with her post in “X”, said in this regard: “About 3 years after Russia’s offensive war, Ukraine can continue to count on its friends and partners. Today, we deliver 3 billion euros to Ukraine, the first payment of the EU part of the G7 loan. We give Ukraine the financial power to continue to fight for its freedom and to prevail.” Europe has provided near 134 billion euros of support to Ukraine – and more will come. Just like the brave Ukrainian resistance, our support will be fastfast. — Ursula von der Leyen (@vonderleyen) This Macro-economic Financial Assistance is vital for addressing Ukraine’s urgent budgetary needs, which have increased significantly in the face of Russia’s intensified and prolonged offensive war. The role of the loan With stable , regular and predictable financial support up to EUR 18.1 billion for 2025 under this instrument, Ukraine will be able to support current and future military needs , budgets and reconstruction . This loan will be able to ensure macroeconomic stability and restore critical infrastructure damaged by Russia, such as energy infrastructure, water systems, transport networks, roads and bridges. In addition, the loan can be used by Ukraine to directly support its military expenditure. At the same time, with the stabilisation of public finances, this assistance will also allow Ukraine to allocate resources to other priority expenditure, including military defence infrastructure against Russian aggression. Since the start of the Russian invasion of Ukraine, the EU, its Member States and European financial institutions have jointly provided nearly EUR 134 billion (including today’s disbursement).