The EU and the US are channeling billions from Russian asset proceeds to help Ukraine.

The European Commission has announced macro-financial assistance to Ukraine through a loan of €18.1B, which will be paid in equal installments throughout 2025 with the first tranche expected in January. This amount is the EU’s contribution to the G7 initiative (ERA), which provides for the collective provision of a €45B loan, which will allow Ukraine to cover budgetary and military expenses as well as reconstruction costs. The loan will be repaid with proceeds from Russian sovereign assets held in the EU.

Also, the European Council noted the Ukraine Facility’s operation, which has allowed Ukraine to receive €16.2B in 2024 and will provide €12.5B in 2025.

Ukraine started receiving the first money from the US at the expense of frozen Russian assets: The World Bank will provide $2B. $1B will be provided as a non-repayable grant from the World Bank’s FIF fund through the US contribution within the framework of the G7 initiative. Another $1.05B will be a loan under guarantees from Japan and the UK.