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Ukraine received CAD 2.5 billion (about $1.7 billion) under the G7 ERA initiative, which provides for the use of proceeds from frozen Russian assets.
According to Time Ukraine Israel, citing Prime Minister Denys Shmyhal, this is the first tranche from Canada, which has allocated a total of CAD 5 billion for the Extraordinary Revenue Acceleration programme.
Where will the funds go?
The money will be used for the priority needs of the state budget of Ukraine, in particular:
- Defence and security – supplying the army and law enforcement agencies;
- Humanitarian programmes – support for internally displaced persons;
- Infrastructure restoration – repair of the power grid and critical facilities.
What is the G7 ERA?
The Extraordinary Revenue Acceleration (ERA) programme was initiated by the G7 countries to use the proceeds of frozen Russian assets to support Ukraine.
Canada was the first country to make an actual transfer under this initiative. Other G7 members are currently agreeing on legal mechanisms to channel similar payments.
What’s next?
Ukraine expects additional tranches from both Canada and other G7 countries.
This mechanism allows Kyiv to strengthen its financial stability without waiting for a final decision on the confiscation of Russian assets in the West.
