The Ministers of Finance of Ukraine and the US Treasury Secretary signed a joint statement on attracting USD 20 billion for Ukraine under the G7 ERA initiative

Today, in Washington, DC, Minister of Finance of Ukraine Sergii Marchenko and U.S. Treasury Secretary Janet Yellen signed a joint statement in which they agreed to attract USD 20 billion for Ukraine.

The funds are part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism worth USD 50 billion.

How will the loan be repaid? 

The loan will be repaid from future profits received from the immobilized russian sovereign assets. These funds will be raised through the Ukraine Loan Cooperation Mechanism (ULCM).

Thus, Ukraine will not use its internal financial resources to cover any expenses related to the loan.

When will Ukraine receive funding?

The U.S. Government is expected to disburse the loan no later than December 31, 2024.

How does the loan agreement with the U.S. align with the EU's Macro-Financial Assistance of up to EUR 35 billion and the already announced UK proposal of £2.26 billion?

The total financing Ukraine will receive under the ERA is USD 50 billion. Given the US Government's proposed funding of USD 20 billion, the Macro-Financial Assistance from the EU will be less than EUR 35 billion. The final amount will be adjusted considering the proposed financing from the remaining G7 countries.

The UK proposal remains unchanged and is part of the overall funding package.

“The United States continues to stand with Ukraine. Significant achievement – USD 20 billion that will be funded by the profits from frozen russian assets. I am grateful to the US Government for this support and to Janet Yellen personally for the considerable efforts that have led to this result. Our cooperation with the G7 and the EU within the ERA initiative demonstrates unwavering unity. For the first time in history, a multilateral coalition has frozen the assets of an aggressor country and is using the profits from these assets to benefit the country that was attacked,” said the Minister of Finance of Ukraine.

Sergii Marchenko and Janet Yellen held a bilateral meeting, during which they discussed the state of Ukraine's financial system this year, the key priorities for the 2025 State Budget, and the directions for using ERA funds.

This year, Ukraine has already received USD 3.9 billion in direct budget support from the United States. Both sides are also working on securing the remaining financing allocated for 2024.