Ukraine Negotiates Second ERA Loan, Weighs Russian Collateral for 2027 Budget
Ukraine's economic bloc is negotiating a second Extraordinary Revenue Acceleration loan while exploring wider use of Russia's frozen sovereign assets as collateral, Finance Minister Serhiy Marchenko and central bank governor said. The push comes as Kyiv submits a record $162 billion 2027 budget with a widening deficit and a $32.6 billion external financing gap still unresolved with partners.
Ukraine is currently negotiating a second Extraordinary Revenue Acceleration (ERA) loan, along with exploring the potential use of Russian frozen sovereign assets as collateral for financing its budget for 2027. The Cabinet of Ministers recently submitted a $162.1 billion budget to parliament, requiring $52 billion in external financing.
However, only $32.6 billion in support has been secured thus far, leaving the rest of the funding gap unresolved. Both Finance Minister Serhiy Marchenko and Central Bank Governor Andriy Pyshnyy are pursuing two strategies: leveraging immobilized Russian assets for aid and developing a second ERA loan. The first ERA loan, signed in late 2024, allocated interest earnings from Russia's immobilized assets to Ukraine, providing $50 billion in non-repayable assistance.
Marchenko expressed hope that frozen Russian assets could help close the financing gap, with discussions on the matter occurring at the highest level. Pyshnyy confirmed the efforts to Kyiv Post, noting that the European Commission is discussing the reviving of a legally sound approach to unlock the assets. Sweden has also urged the European Commission to re-open the debate on Russia's frozen assets, with the Commission resuming its search for a viable solution.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
