Ukraine to Receive Additional €8.4 Billion Under ERA Mechanism by Year-End – Dombrovskis

Financing for Ukraine under the ERA loan mechanism, which involves the G7 countries and the European Union, is proceeding as planned, with an additional €8.4 billion expected to be disbursed by the end of the year.

That’s according to EU Commissioner for Economy and Productivity Valdis Dombrovskis, who spoke at a press briefing following the EU Council meeting on Economic and Financial Affairs in Luxembourg.

“As for Ukraine’s financing, this year we are on track. The implementation of the existing ERA loans is progressing well, as G7 partners and the EU have already disbursed €25.3 billion. We expect another €8.4 billion to be paid by the end of the year,”
— emphasized Dombrovskis.

He recalled that EU sanctions aim to maximize pressure on Russia’s war economy. The 19th sanctions package targets further restrictions on Russia’s revenues from energy exports, limits its access to advanced technologies, and closes loopholes in the sanctions regime.

During the meeting, EU ministers mainly discussed the European Commission’s proposal for a “reparations loan” to Ukraine — financed by the frozen assets of Russia’s Central Bank. Ukraine would only have to repay it once Russia pays reparations for the damages caused by its war.

“Following President (Ursula) von der Leyen’s remarks at last week’s informal European Council in Copenhagen, we had a constructive discussion and clarified several key issues. Based on this, the Commission will continue intensive technical work with Member States to move this forward,”
— Dombrovskis said.

He added that the EU continues close cooperation with international partners. The G7 finance ministers recently reaffirmed their readiness to use the full amount of frozen Russian assets in their jurisdictions — a signal that, as Dombrovskis put it, “we are all on the same page.”

“Russia is the aggressor and must compensate for the damage inflicted on Ukraine,”
— stressed the EU Commissioner.

Earlier, on October 1, the European Commission disbursed the ninth tranche of €4 billion in macro-financial assistance to Ukraine, reaffirming the EU’s commitment to the ERA loan initiative, for which €6 billion had already been pledged by the EU.

ERA loans from G7 partners and the EU will ultimately be repaid using frozen Russian assets held in Europe.