Russian assets are working for Ukraine: Kyiv receives €4bn from EU

Ukraine receives another €4bn loan from the EU at the expense of Russian assets

The European Union provided Ukraine with a €4 billion loan using proceeds from frozen Russian assets.

Financial assistance from the EU

The European Union has transferred another tranche of financial assistance to Ukraine in the amount of 4 billion euros. The funds were provided in the form of a loan under the mechanism Ukraine Facility, which provides for long-term support for the Ukrainian economy.

The peculiarity of this tranche is that it is formed from the proceeds of frozen Russian assets controlled in European jurisdictions.

Where the money will go

According to the European Commission, the money will be used to:

• stabilisation of the state budget,

• support for energy infrastructure,

• social payments and restoration of critical facilities,

• financing the reforms necessary for Ukraine's European integration.

Context.

Ukraine remains the largest recipient of financial assistance from the EU. In total, Kyiv expects to receive about 18 billion euros within the framework of the Ukraine Facility.

European leaders emphasise that the use of frozen Russian assets to help Ukraine is a response to the Kremlin's aggression and a signal of the West's readiness to support Kyiv in the long term.