Ukraine received its first 3 billion euro ($3.09 billion) tranche of the European Union's portion of a loan agreed by the Group of Seven members and backed by the earnings from frozen Russian sovereign assets,

KYIV (Reuters) - Ukraine received its first 3 billion euro ($3.09 billion) tranche of the European Union's portion of the Extraordinary Revenue Acceleration (ERA) loan agreed for Ukraine by the G7 group of countries, its prime minister Denys Shmyhal said on Friday.

Ukraine on Friday received €3 billion ($3.1 billion) from the European Commission as part of a major aid package pledged by the Group of Seven (G7) leading economies. The G7 and the European Union aim to provide Ukraine with a loan of $50 billion,

Ukraine has received the first tranche of €3 billion from the amount allocated by the European Union for a joint loan from the G7 to Ukraine, which will be repaid using proceeds from frozen Russian assets.

"This is the first tranche of funds from the European Union, secured through income from frozen Russian assets," Prime Minister Denys Shmyhal said.

Ukraine received its first 3 billion euro ($3.09 billion) tranche of the European Union's portion of a loan agreed by the Group of Seven members and backed by the earnings from frozen Russian sovereign assets,

According to Ukraine’s Ministry of Finance, these funds will be used to finance priority state budget expenditures, including social programs, military needs, and critical infrastructure restoration.