Brussels: Ukrainian Prime Minister Denys Shmyhal announced that Ukraine has received £1 billion from the European Union as part of the Extraordinary Revenue Acceleration (ERA) program. The funding, derived from profits generated by immobilized Russian central bank assets, aims to support Ukraine's critical budgetary needs and stabilize the nation amid ongoing war-related challenges.
According to Anadolu Agency, Prime Minister Shmyhal communicated via Telegram that this financial assistance is part of a larger, fair strategy in which the aggressor bears the cost of the destruction inflicted on Ukrainian territory. He expressed gratitude towards the EU and G7 for establishing a functional financial mechanism to address these needs. Furthermore, Shmyhal emphasized that Ukraine anticipates additional measures, such as the confiscation of Russian assets and the imposition of stronger sanctions in response to reported atrocities.
The European Union had previously resolved to allocate profits, rather than the principal, from frozen Russian assets to aid Ukraine, setting a significant precedent in the realm of wartime reparations through financial instruments. The ERA program, a G7-led initiative, provides financial support to Ukraine through loans, repaid by utilizing frozen Russian assets.