EU delivers $1.6B from frozen Russian assets profits to support Ukraine

The European Union has delivered $1.6 billion in proceeds from interest on cash balances tied to frozen Russian assets to be used to support Ukraine, the commission announced on Wednesday.

According to a Commission statement, the funds were generated from immobilized assets of the Central Bank of Russia held by central securities depositories and will be used to support Ukraine during the ongoing war.

The transfer marks the fourth disbursement of such revenues and covers interest accumulated during the second half of 2025.

While the underlying assets remain frozen under EU sanctions, the interest does not belong to Russia and has been earmarked to support Ukraine following a proposal by the European Commission.

European Commission President Ursula von der Leyen said the funds will be directed "to where they are needed most: to sustain the Ukrainian state, preserve essential public services, and support the brave Ukrainian Armed Forces."

Under the agreed allocation, 95% of the funds will be channeled through the Ukraine Loan Cooperation Mechanism, which provides non-repayable support to help Ukraine service EU and G7 loans.

The remaining 5% will be allocated through the European Peace Facility to meet urgent defense and military needs.

Since the war started in Ukraine in February 2022, the EU has imposed multiple sanctions targeting key Russian institutions, including the immobilization of Central Bank of Russia assets held in EU jurisdictions.