**Ukraine Receives Additional $1.2 Billion in EU Funds**
The European Union has handed over an additional 1 billion euros, or approximately $1.2 billion, to Ukraine as part of a larger effort to support the country’s recovery from Russia’s full-scale invasion. This latest tranche of funds is being provided using profits from frozen Russian assets, according to Ukrainian Prime Minister Denys Shmyhal.
**Frozen Russian Assets: A Key Source of Funding**
The money is coming from the Group of Seven’s (G7) Extraordinary Revenue Acceleration (ERA) mechanism, which aims to use future profits from frozen Russian assets to finance Ukraine’s defense and reconstruction efforts. Since Russia’s invasion in 2022, G7 countries have collectively frozen approximately $300 billion in Russian sovereign assets.
**Ukraine’s Swift Recovery Efforts**
Ukraine has already received over $18.5 billion this year using the ERA mechanism, with a significant portion of these funds being directed towards swift recovery projects. Shmyhal announced on July 10 that Ukraine will continue to urge international partners to jointly develop legal mechanisms for the full confiscation of Russian assets.
**G7 Countries Pledge Support**
The ERA initiative is primarily backed by the United States and the European Union, with significant contributions also coming from the United Kingdom, Canada, and Japan. The total sum being provided under this initiative is expected to reach $50 billion in loans that will be repaid using future profits from frozen Russian assets.
**A Long-Term Plan**
Ukraine is expected to receive all funds from the ERA initiative by the end of 2027, making it a long-term plan to support the country’s recovery and reconstruction efforts. The EU has pledged a significant contribution of 18.1 billion euros ($21 billion) towards this effort.
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