Ukraine’s Minister of Finance, Serhiy Marchenko, has signed a Memorandum of Understanding and Loan Agreement with the European Union to secure up to €35 billion in macro-financial assistance (MFA). The signing also involved Andriy Pyshnyy, Governor of the National Bank of Ukraine, and Valdis Dombrovskis, Vice President of the European Commission, according to the Ministry of Finance’s press service.
The funds are part of the G7’s Extraordinary Revenue Acceleration Loans for Ukraine (ERAL) initiative. The final MFA amount will be confirmed once all initiative members approve their respective contributions. Currently, with the United States proposing $20 billion in financing, the EU’s contribution is estimated at €18 billion.
The loan is structured to be repaid exclusively from the future profits of frozen Russian sovereign assets in the EU, meaning no domestic Ukrainian financial resources will be used. This aligns with the new Ukraine Loan Cooperation Mechanism (ULCM), which ensures the assistance is provided on a non-repayable basis.
The programme encompasses 14 measures aimed at enhancing macro-financial stability and reform in areas such as state-owned enterprises, public administration, energy, rule of law, anti-corruption, and defence.
“In recent months, we have worked intensively with the European Union and other partners to secure concrete financial solutions for Ukraine’s needs in 2025 and beyond,” Marchenko stated.
- In October, the European Parliament’s Trade Committee approved the allocation of approximately €35 billion in financial support for Ukraine, sourced from frozen Russian Federation assets.