EU allocates EUR1 bln to Ukraine as part of G7 loan

The European Commission (EC) announced on Wednesday a number of EU steps to further support Ukraine, in particular the allocation of EUR1 billion to Kyiv as part of a loan from the G7 countries.

“We work across the board to strengthen the country and support a just and lasting peace on Ukraine's terms. Today's disbursement and agreements are also an investment in a shared common future,” said Ursula von der Leyen, President of the European Commission.

"The European Commission has disbursed an additional EUR1 billion tranche of its exceptional Macro-Financial Assistance (MFA) loan to Ukraine, to be repaid with proceeds from immobilized Russian State assets in the EU. This payment brings the total MFA disbursements to Ukraine to EUR5 billion," reads the report.

"This week the EU has requested EUR2.1 billion in windfall profits generated from immobilized assets of the Russian Central Bank, held by the Central Securities Depositories (CSDs). This receipt of this amount will mark the second transfer of its kind, following a first tranche delivered in July 2024. It covers revenues accumulated during the second half of 2024," the EC said.

"Five new EU-Ukraine agreements were signed today. These include three finance contracts worth EUE300 million between the European Investment Bank and Ukraine, supporting key operations that address Ukraine's most pressing recovery needs. In addition, the Commission signed an agreement on Ukraine's participation in the Copernicus component, as well as in the Space Weather Events and Near-Earth Object sub-components of the EU Space Program," according to the document.