The European Commission is urging its G7 partners to follow the EU’s lead by swiftly disbursing loans to Ukraine under the ERA program, which will be repaid using profits from frozen Russian assets. This call was made by EU spokesperson Balazs Ujvari during a briefing in response to questions regarding the ERA program’s progress.
“The total loan amount under the ERA is €45 billion, with over €38 billion already disbursed to Ukraine by G7 partners. Our contribution from the EU is €18 billion, which has been fully paid. It is crucial for us to ensure Ukraine receives the remaining funds as quickly as possible, and we encourage all G7 partners to follow our example,” Ujvari stated.
Since the onset of Russia’s full-scale invasion of Ukraine, approximately €280 billion in Russian assets have been frozen abroad, with more than two-thirds located within the EU. Belgian firm Euroclear holds around €191 billion belonging to the Russian Central Bank, which reportedly earned about €4.4 billion in 2023, according to a financial report by the Financial Times.
In July 2024, G7 and EU leaders agreed to utilize interest from these frozen assets to allocate $50 billion to Ukraine. However, the U.S. demanded that the EU provide clear assurances that the loan could be fully repaid with EU-held assets, as the deadline for European sanctions against Russia was approaching.
Subsequently, Washington announced that it would not unblock Russian assets until Moscow fully compensates Kyiv for reparations. In October 2024, G7 leaders approved a $50 billion loan to Ukraine, which will be repaid using profits from frozen Russian assets.
The European Commission is pressing G7 nations to expedite loan payments to Ukraine under the ERA program, highlighting the importance of utilizing frozen Russian assets for repayment. This initiative comes as leaders seek to support Ukraine amidst ongoing geopolitical tensions.