**EU Gives Ukraine Nearly $3.09 Billion in Loans**
The European Union (EU) has given Ukraine a loan of 3 billion euros, which is approximately $3.09 billion. This money comes from the income generated by frozen Russian assets.
According to Prime Minister Denys Shmyhal, this is the first tranche of funds provided through the Extraordinary Revenue Acceleration (ERA) initiative. The ERA initiative was started by G7 countries, who promised to give Ukraine a $50 billion loan. The EU’s contribution to this initiative is about $20 billion.
**”Russia Will Pay”**
The Prime Minister said that Ukraine is implementing the principle of “Russia will pay.” This means that Russia’s frozen assets are being used to support Ukraine’s financial stability. Shmyhal also added that these funds will help strengthen Ukraine’s economy in 2025.
**Background on Frozen Russian Assets**
Western countries have frozen $300 billion in Russian assets. However, they can only use the annual income generated by these funds, which is around $3.2 billion. These profits will be used to back the $50-billion loan to Ukraine.
In June, President Volodymyr Zelensky asked for a mechanism to fully confiscate the frozen Russian funds. This could help support Ukraine’s long-term recovery.