The European Union has provided Ukraine with the first tranche of one billion euros within the Extraordinary Revenue Acceleration program. The funds are provided at the expense of profits from frozen assets of the Central Bank of the Russian Federation.
This was announced on May 8 by Prime Minister of Ukraine Denis Shmigal in his Telegram channel. He noted that funding will be aimed at covering critically important budget expenditures and strengthening the state.
According to him, the EU decision is an example of a fair approach when the country that has solved the war should be responsible for destruction. Shmigal stressed that the profits derived from frozen assets should serve in favor of the affected side.
The ERA program involves the use of revenues that are generated by the placement of Russian assets in European financial institutions. It is not about the confiscation of the assets themselves, but only about profits that cannot be transferred to Russia because of current sanctions.
Ukraine will be expected to receive additional funds during this initiative during this year, which will go to defense, humanitarian needs, restore infrastructure and institutional strengthening.
