There is no peace because Russia refuses to end the war. On 16 June, Ukrainian President Volodymyr Zelenskyy accused Russia of derailing all global efforts to achieve peace, speaking at a press conference in Vienna following talks with Austrian President Alexander Van der Bellen, UNIAN reports. 

Zelenskyy emphasized that Kyiv remains open to diplomacy, but the Kremlin blocks every initiative.

“We’re doing everything we can to end this war… but there’s no ceasefire, no honest diplomacy, no lasting security. And that’s only because of Russia,” he said.

He called for increased pressure on Moscow to stop the bloodshed and destruction, adding that this was a key focus of his discussions in Vienna.

Zelenskyy urged the EU to adopt a strong 18th sanctions package and maintain existing restrictions, including the freeze on Russian assets.

According to the Ukrainian leader, President Van der Bellen expressed readiness to support peace efforts and provide “credible mediation” in any potential talks with Russia.

Zelenskyy also stressed the importance of preserving transatlantic unity.

“We all want the US–Europe alliance to stay strong. If it collapses, Europe will have to rapidly build up its defense industry, which takes big money and very little time,” he warned.

Finally, Zelenskyy announced plans to speak with US President Donald Trump about a new defense package Ukraine is ready to purchase.

Ukraine has received another 1 billion euros ($1.1 billion) in macro-financial assistance from the European Union as part of a G7 loan, Prime Minister Denys Shmyhal announced on June 13.

"This is the fifth tranche of macro-financial assistance from the EU under the ERA Extraordinary Revenue Acceleration) initiative," Shmyhal wrote on social media. "The funds will be directed toward key expenditures of the state budget."

Shmyhal thanked Ukraine's partners for their "consistent and reliable support," adding, "Together, we will make (Russia) pay for all the damage caused to Ukraine."

According to Shmyhal, Ukraine has received a total of 7 billion euros ($8 billion) from the European Union under the ERA initiative, which is funded by the windfall profits generated from immobilized Russian sovereign assets.

The ERA mechanism, launched by the G7 and backed by the EU and the United States, is a $50 billion program designed to support Ukraine through loans repaid using future income from frozen Russian assets. Since Russia's full-scale invasion in 2022, G7 countries have frozen around $300 billion in Russian sovereign assets.

Ukraine received the previous 1-billion-euro tranche on May 8 as part of the fourth installment of EU aid under ERA.

EU provides Ukraine with $1 billion tranche under G7 loan covered by Russian assets

This is the fourth such tranche from the bloc, which is secured by proceeds from frozen Russian assets.

The Kyiv IndependentKateryna Hodunova

A German official has called on the European Union to take a "closer look" at the issue of frozen Russian assets and using them to support Ukraine, stressing the need to take a harder stance against the Kremlin.

Thorsten Frei, Head of the German Chancellery, stated in an interview with the Frankfurter Allgemeine Sonntagszeitung on May 31 that the EU should "take a much closer look at the issue of Russian state funds than we have so far."

He also urged the EU to take a more assertive position against Moscow, adding that "we must not allow the game that Russia is playing with us to go unchallenged."

The question of frozen Russian assets, and what to do with them, has been discussed by the EU and other Western countries since the start of the full-scale invasion. Recently, the Group of Seven – including Germany – pledged to keep Russian assets frozen until the end of the war.

Frei's comments suggest that Germany's new Chancellor Friedrich Merz may be open to the idea of seizing the approximately €200 billion ($227 billion) in Russian state assets in the EU.

Frei also mentioned the 18th package of EU sanctions currently under preparation, citing them as an example of tougher measures against Russia. According to Frei, the upcoming sanctions are a response to Russian President Vladimir Putin's refusal to comply with demands for a ceasefire.

"Measures are being prepared that are tougher than before, and which some European states have therefore shied away from so far," Frei said, stressing that the sanctions package will have "far-reaching punitive measures."

Frei added that the sanctions package will target Russia's shadow fleet, energy sector, financial sector, and Nord Stream pipelines.

"If you want to achieve a ceasefire by peaceful means, then your tools are limited," Frei said. "That is why I am very much in favor of using the tools at your disposal."

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The proposed bill would introduce expansive penalties on Russia and impose 500% tariffs on imports from countries purchasing Russian fossil fuels.

The Kyiv IndependentTim Zadorozhnyy

On 27 May, Ukraine’s Defense Ministry announced that the United Kingdom will allocate funding from the ERA (Extraordinary Revenue Acceleration) initiative to support Ukraine’s military needs. Under this agreement, Ukraine is set to receive $3 billion over 2025–2026. The funds originate from excess profits generated by frozen Russian assets.

The Ministry reported that the agreement was signed by First Deputy Minister of Defense of Ukraine Serhii Boiev and Deputy Minister of Strategic Industries of Ukraine Davyd Aloian. Representing the United Kingdom, Major General Anna-Lee Reilly, Director Strategic Capability, Engagement and Operations at the UK Ministry of Defence, signed the agreement.

Funding targets defense procurement and repairs

Ukraine’s Defense Ministry detailed that the funding will be used for:

• Procurement of defense products manufactured abroad;
• Repair and maintenance of military equipment;
• Joint projects between Ukrainian and international defense companies;
• Procurement of critically essential materials, including items made in Ukraine.

According to Boiev, the use of Russian-origin profits for defense purposes is “not only valuable in practical terms, but also as a matter of principle.” He stated:

“The use of excess profits from Russian assets to reinforce Ukraine’s defense is a just response to aggression and an acknowledgement of Ukraine’s right to self-defense.”

Ukraine seeks to unlock production potential

Deputy Minister Davyd Aloian emphasized the importance of the funding in activating domestic capacity:

“Ukrainian enterprises have a production capacity of $35 billion, but insufficient funding prevents their full utilization. Therefore, leveraging excess profits generated from frozen Russian assets will significantly boost the production and repair capacities of Ukraine’s defense industry.”

The Ukrainian side thanked the United Kingdom for providing the financial support and for backing Ukraine’s armament production efforts.

Kyiv and London signed an agreement to use $3 billion profits from frozen Russian assets under the Extraordinary Revenue Acceleration (ERA) initiative to cover the needs of the Ukrainian army and the Ukrainian defense industry, Ukraine's Defense Ministry announced on May 27.

The G7's ERA mechanism, totaling $50 billion, provides loans to Ukraine that will be repaid using future profits from frozen Russian assets.

The U.K. has pledged to lend Ukraine 2.26 billion pounds (around $3 billion) in three equal installments as part of the G7's ERA initiative. Ukraine received the first installment worth 752 million pounds ($970 million) on March 7.

The funds will be used to purchase foreign-made defense products, repair and maintain military equipment, implement joint projects with Ukrainian and international defense companies, and purchase other critical materials, including Ukrainian-made products, the statement read.

"Ukrainian enterprises have capacities worth $35 billion, but the lack of funds does not allow them to utilize them to the fullest," Deputy Strategic Industries Minister Davyd Aloian said.

"Therefore, attracting excess profits from frozen Russian assets will significantly boost the production and repair capacities of the Ukrainian defense industry."

Since Russia's full-scale invasion began 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.

Why did Russia invade Ukraine? Debunking Putin’s ‘root causes’ claims

As Russia continues to bombard cities and towns across Ukraine, Russian officials have hardened their position against a ceasefire, continuing to repeat the obscure demand that the war’s “root causes” be addressed before agreeing to any truce. For months, the phrase “root causes” has become a go-to talking point

The Kyiv IndependentAndrea Januta