EU receives $1.6B from frozen Russian assets to support Ukraine

The European Union has received €1.4 billion ($1.6 billion) in windfall profits generated from immobilized Russian central bank assets, with the funds set to support Ukraine, the European Commission announced on Wednesday.

The latest transfer is the fifth of its kind and covers revenues accumulated during the first half of 2026, according to a statement.

It follows a previous €1.4 billion tranche transferred in March, bringing the total windfall profits generated from the immobilized assets to €8 billion ($9.3 billion) since the sanctions were imposed.

European Commission President Ursula von der Leyen said: "Russia must pay for the destruction it has caused."

"And we are using the proceeds from the immobilised Russian assets to make sure it does. We are making a further €1.4 billion of them available to Ukraine," she said.

According to the EU Commission, 95% of the proceeds will be allocated through the Ukraine Loan Cooperation Mechanism (ULCM), which provides non-repayable support to help Ukraine repay EU macro-financial assistance loans and financing provided under the Group of Seven (G7) Extraordinary Revenue Acceleration (ERA) Loans initiative.

The remaining 5% will be directed through the European Peace Facility (EPF) to support Ukraine's military and defense needs.

The funds originate from interest earned on cash balances linked to assets of the Central Bank of Russia that were immobilized under EU sanctions following the start of the war in Ukraine.