Ukraine is expecting the arrival of another tranche of financial aid under the Extraordinary Revenue Acceleration (ERA) instrument as early as October. This was announced by Defense Minister Denys Shmyhal following talks with European Commissioner for Economy and Productivity Valdis Dombrovskis.
This is reported by Finway
Discussion of Defense Initiatives and Funding
During the conversation, special attention was given to the implementation of the SAFE instrument – the European Union’s defense initiative with a funding volume of 150 billion euros. The parties coordinated priority projects and the involvement of Ukrainian defense industry enterprises in their implementation.
Additionally, the parties discussed the financing of Ukraine’s defense needs, particularly through the ERA mechanism. The minister emphasized that the next tranche is expected in October.
“We coordinated our needs, priority projects, and the involvement of Ukrainian defense industry enterprises. We also discussed the financing of Ukraine’s defense needs, including through the ERA mechanism. We expect the next tranche in October,” the minister stated.
Frozen Russian Assets and New Sanctions
During the dialogue, the issue of confiscating frozen Russian assets for the benefit of Ukraine was also addressed. Furthermore, there was mention of work on the 19th package of sanctions against the Russian Federation, which has already been agreed upon at the EU level. The Ukrainian side hopes for its swift adoption to enhance security in Ukraine and Europe.
Valdis Dombrovskis confirmed that assistance under the ERA, as well as a loan for the reconstruction of Ukraine, is to be provided in October. According to him, repayment of the loan will begin only after Russia pays reparations.
It was previously reported that the amount of the “reparations loan” from the European Union for Ukraine could reach up to 130 billion euros.
In August, Ukraine already received 1 billion euros under the ERA from the proceeds of frozen Russian assets. The Extraordinary Revenue Acceleration initiative, launched by the G7 countries, involves providing financial resources to Kyiv from the income generated by seized Russian funds.