The EU receives €1.4 billion from frozen Russian assets and is channelling the funds to Ukraine

Brussels – New European funds to support Ukraine are coming from interest accrued on Russian assets frozen within the European Union. On 3 August, the EU received €1.4 billion in windfall profits generated by the frozen assets of the Central Bank of Russia (CBR) held with central securities depositories (CSDs). This is reported in a press release from the European Commission published today (5 August). This is the fifth tranche of this kind, following the one transferred in March, and brings the total revenue accumulated since the Russian assets were frozen to €8 billion. 

The funds will be entirely earmarked for support for Kyiv. “Russia must pay for the destruction it has caused. We are using the proceeds from frozen Russian assets to ensure that this happens,” said the President of the European Commission, Ursula von der Leyen. “We are making a further €1.4 billion available to Ukraine. These funds will support Ukraine’s continued resistance against the illegal war waged by Russia.” 

The Russian Central Bank’s assets had been frozen as part of the sanctions packages adopted by the EU following the invasion of Ukraine. Although they remain frozen, these assets continue to generate interest on cash balances. Under European law, these revenues do not belong to Russia and may therefore be used to support Ukraine. 

The allocation of funds provides that 95 per cent is channelled into the Ukraine Loan Cooperation Mechanism (ULCM). This mechanism provides grants to help Kyiv repay the EU macro-financial assistance loan disbursed in 2025 and the funding provided by the G7 countries under the  Extraordinary Revenue Acceleration (ERA) Loans initiative, totalling €45 billion. The remaining 5 per cent will instead be allocated to the European Peace Facility (EPF), which is used to support Ukraine’s military and defence needs. 

The legal framework governing the use of these proceeds was established in several stages. In February 2024, the Council of the EU ruled that central securities depositories holding more than one million euros in frozen assets of the Russian Central Bank should set aside the extraordinary revenues generated by those assets, without being able to dispose of them. A few months later, on 21 May 2024, the Council adopted the legislative acts authorising the use of these funds for the benefit of Ukraine. The latest tightening of measures came in December 2025, when the Council approved Regulation (EU) 2025/2600, based on Article 122 of the Treaty on the Functioning of the European Union, which permanently prohibits the transfer to Russia of the frozen assets of its Central Bank.