Ukraine gets $1.7 billion loan from Canada backed by Russian assets
Ukraine has received a 2.5 billion Canadian dollar ($1.7 billion) loan from Canada under the Group of Seven’s (G7) Extraordinary Revenue Acceleration (ERA) initiative, Prime Minister Denys Shmyhal announced on June 30.
Under the ERA mechanism, Ukraine is expected to get $50 billion in loans that will be repaid using future profits from frozen Russian assets.
Canada’s contribution to the initiative is $3.5 billion, and the loan will be granted for 30 years. The Canadian government sent the first tranche in March.
Since the beginning of the year, Ukraine has received about $17.6 billion from Russia’s frozen assets, according to Shmyhal.
“We insist on the complete confiscation of the frozen funds of the Russian Federation. They are needed to pay compensation to victims of the aggression and to rebuild our country. This will also be an act of justice to prevent future wars of aggression,” Shmyhal said.
Since Russia’s full-scale invasion in 2022, G7 countries have frozen approximately $300 billion in Russian sovereign assets.
The ERA initiative, backed primarily by the U.S. and the EU, aims to use profits from these frozen assets to finance Ukraine’s defense and reconstruction.
The Kyiv IndependentYuliia Taradiuk