Latest news with #ExtraordinaryRevenueAcceleration
Yahoo
a day ago
- Business
- Yahoo
Ukraine receives 5th tranche of EU aid from frozen Russian assets, PM confirms
Ukraine has received another 1 billion euros ($1.1 billion) in macro-financial assistance from the European Union as part of a G7 loan, Prime Minister Denys Shmyhal announced on June 13. "This is the fifth tranche of macro-financial assistance from the EU under the ERA Extraordinary Revenue Acceleration) initiative," Shmyhal wrote on social media. "The funds will be directed toward key expenditures of the state budget." Shmyhal thanked Ukraine's partners for their "consistent and reliable support," adding, "Together, we will make (Russia) pay for all the damage caused to Ukraine." According to Shmyhal, Ukraine has received a total of 7 billion euros ($8 billion) from the European Union under the ERA initiative, which is funded by the windfall profits generated from immobilized Russian sovereign assets. The ERA mechanism, launched by the G7 and backed by the EU and the United States, is a $50 billion program designed to support Ukraine through loans repaid using future income from frozen Russian assets. Since Russia's full-scale invasion in 2022, G7 countries have frozen around $300 billion in Russian sovereign assets. Ukraine received the previous 1-billion-euro tranche on May 8 as part of the fourth installment of EU aid under ERA. Read also: EU provides Ukraine with $1 billion tranche under G7 loan covered by Russian assets We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
27-05-2025
- Business
- Yahoo
UK to funnel $3 billion to Ukraine's arms, hardware repairs under G7 loan covered by Russian assets
Kyiv and London signed an agreement to use $3 billion profits from frozen Russian assets under the Extraordinary Revenue Acceleration (ERA) initiative to cover the needs of the Ukrainian army and the Ukrainian defense industry, Ukraine's Defense Ministry announced on May 27. The G7's ERA mechanism, totaling $50 billion, provides loans to Ukraine that will be repaid using future profits from frozen Russian assets. The U.K. has pledged to lend Ukraine 2.26 billion pounds (around $3 billion) in three equal installments as part of the G7's ERA initiative. Ukraine received the first installment worth 752 million pounds ($970 million) on March 7. The funds will be used to purchase foreign-made defense products, repair and maintain military equipment, implement joint projects with Ukrainian and international defense companies, and purchase other critical materials, including Ukrainian-made products, the statement read. "Ukrainian enterprises have capacities worth $35 billion, but the lack of funds does not allow them to utilize them to the fullest," Deputy Strategic Industries Minister Davyd Aloian said. "Therefore, attracting excess profits from frozen Russian assets will significantly boost the production and repair capacities of the Ukrainian defense industry." Since Russia's full-scale invasion began in 2022, G7 countries have frozen approximately $300 billion in Russian sovereign assets. The ERA initiative, backed primarily by the U.S. and the EU, aims to use profits from these frozen assets to finance Ukraine's defense and reconstruction. Read also: Why did Russia invade Ukraine? Debunking Putin's 'root causes' claims We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
27-05-2025
- Business
- Yahoo
UK to allocate US$3bn in profits from frozen Russian assets to strengthen Ukraine's defence
The UK Ministry of Defence, the Ukrainian Ministry of Defence and the Ministry of Strategic Industries of Ukraine have signed a project agreement on the use of windfall profits from frozen Russian assets under the Extraordinary Revenue Acceleration (ERA) initiative to arm and repair equipment for Ukraine. Source: European Pravda, as reported by the press service for the Ministry of Defence of Ukraine Details: "This funding has not only practical but also fundamental value. Surplus profits from Russian assets are being used to strengthen Ukraine's defence in response to aggression and in recognition of Ukraine's right to self-defence," said First Deputy Defence Minister Serhii Boiev. According to the agreement, Ukraine will receive US$3 billion between 2025 and 2026. The funds will be used to purchase foreign-made defence products, repair and maintain military equipment, implement joint projects involving Ukrainian and international defence companies, and purchase other critical materials, including Ukrainian-made products. "Ukrainian companies have a capacity of US$35 billion, but a lack of funds prevents them from being fully utilised. Therefore, attracting windfall profits from frozen Russian assets will significantly strengthen the production and repair capacities of the Ukrainian defence industry," said Davyd Aloian, Deputy Minister for Strategic Industries of Ukraine. Background: In 2024, the G7 agreed to jointly provide Ukraine with a loan of US$50 billion from Russian assets: the funds will be formally provided as a loan but will be repaid from the proceeds of frozen Russian assets. In May, the European Commission disbursed the fourth tranche of macro-financial assistance to Ukraine in the amount of €1 billion under the G7 ERA initiative, which provides financial resources to Kyiv from the proceeds of frozen Russian assets. Support Ukrainska Pravda on Patreon!
Yahoo
08-05-2025
- Business
- Yahoo
EU provides Ukraine with $1 billion tranche under G7 loan covered by Russian assets
Ukraine has received 1 billion euro ($ 1.1 billion) from the European Union under the G7's Extraordinary Revenue Acceleration (ERA) initiative, the European Commission announced on May 8. The ERA mechanism, totaling $50 billion, provides loans to Ukraine that will be repaid using future profits from frozen Russian assets. This is the fourth such tranche from the bloc which is secured by proceeds from frozen Russian assets. The EU's contribution to the initiative totals 18.1 billion euros ($20.4). With the recent payment, the Commission's total lending to Ukraine under this MFA has reached 6 billion euros ($6.8 billion) since the start of the year, the statement read. Prime Minister of Ukraine Denys Shmyhal said that the government will use the funds to "cover critical budget expenditures and strengthen the state." "It is part of a consistent and just response: the aggressor must pay for the devastation it has caused," Shmyhal wrote on X. "We are counting on further steps — full confiscation of assets and toughening sanctions in response to Russia's continued atrocities," he added. Since Russia's full-scale invasion in 2022, G7 countries have frozen approximately $300 billion in Russian sovereign assets. The ERA initiative, backed primarily by the U.S. and the EU, aims to use profits from these frozen assets to finance Ukraine's defense and reconstruction. Previously, in March, Ukraine received the first tranche of 2.5 billion Canadian dollars (about $1.7 billion) from Ottawa and 752 million pounds ($970 million) as the first installment of the U.K.'s contribution to the G7 loan. Read also: 'Clearly, Ukraine is holding cards' — economist on why US pressure won't force Kyiv to concede We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Express Tribune
19-04-2025
- Business
- Express Tribune
Japan grants $3 billion loan to Ukraine using profits from frozen Russian assets
Listen to article Japan has pledged approximately $3 billion in financial support to Ukraine through the G7's innovative ERA (Extraordinary Revenue Acceleration) mechanism, which utilises profits from frozen Russian sovereign assets. The announcement was made by Ukraine's Ministry of Finance following an agreement signed between Ukrainian Finance Minister Serhii Marchenko and Japan's Ambassador to Ukraine, Masashi Nakagome. The loan will be repaid using future revenue generated from immobilized Russian assets seized by G7 nations following Russia's 2022 full-scale invasion of Ukraine. The financial support is structured over a 30-year term and will contribute to Ukraine's urgent budgetary needs as well as long-term reconstruction and development efforts. 'This agreement not only meets critical fiscal demands but also underscores Japan's steadfast commitment to democratic values and support for Ukraine,' Marchenko said. Japan has so far extended over $8.5 billion in aid to Ukraine since the start of the war. This latest move follows a July 2024 agreement by G7 and EU leaders to allocate $50 billion to Ukraine, to be financed by interest accrued on roughly €280 billion ($318 billion) in frozen Russian assets globally—most of which are held in the European Union. The bulk of these funds, approximately €191 billion ($217 billion), are managed by Belgium-based Euroclear, which generated nearly €4.4 billion ($4.8 billion) in profits from these assets in 2023, according to the Financial Times. The US., EU, and UK are also contributing to the broader G7 plan, with the United States previously announcing a $20 billion loan, the EU up to $35 billion, and the UK nearly $3 billion. The agreement highlights continued G7 coordination in sustaining Ukraine's economy while increasing pressure on Russia through strategic asset immobilization.
