Statement of the Ministry of Finance of Ukraine on the decision of the G7 to allocate about $50 billion to Ukraine through Extraordinary Revenue Acceleration Loans for Ukraine

At the G7 Summit in Italy, the G7 leaders agreed to provide Ukraine with about USD 50 billion by the end of the year. 

The loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets held in the European Union and other jurisdictions.

The Ministry of Finance welcomes this pivotal decision, as it will ensure that Ukraine possesses the essential resources to bolster its resilience amidst the challenges of a full-scale war.

The joint communiqué of the G7 leaders:

"We remain determined to dispel any false notion that time is on Russia's side, that destroying infrastructure and livelihoods has no consequences for Russia, or that Russia can prevail by causing Ukraine to fail economically. With a view to supporting Ukraine's current and future needs in the face of a prolonged defense against Russia, the G7 has reached consensus to launch “Extraordinary Revenue Acceleration (ERA) Loans for Ukraine", in order to make available approximately USD 50 billion in additional funding to Ukraine by the end of the year.”

All G7 countries pledged to keep russia's sovereign assets immobilized  until russia ends its aggression and pays for the damage it has caused to Ukraine. 

The countries assured that they will work to obtain approval in these jurisdictions to use future flows of these extraordinary revenues to service and repay the loans.

Meanwhile, the parties emphasized that the issue of confiscation of frozen assets of the Russian Federation remains on the agenda. The G7 jurisdictions hold about USD 280 billion of frozen sovereign assets of russia. 

Minister of Finance of Ukraine Sergii Marchenko commented on the decision:

"The decision of the G7 leaders is a powerful signal of the unity of the democratic world. russia must feel the price of its aggressive war against Ukraine and pay for its illegal actions. Using the extraordinary revenues stemming from the immobilization russia's assets is one of the first steps on this path. USD 50 billion will cover Ukraine's most urgent needs in 2025 and strengthen its resilience in the face of a full-scale war." 

Recently, the EU has also approved the allocation of revenues from frozen russian assets in the amount of EUR 1.5 billion. This is expected that Ukraine will receive the funds in July 2024. 90% will be used for defense needs and 10% for reconstruction and recovery.