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EU to Send Another €1.4 Billion in Russian Asset Profits to Ukraine

The European Union is preparing to disburse another €1.4 billion in profits generated from frozen Russian central bank assets to Ukraine. This marks the fourth transfer of funds derived from interest income accumulated in the second half of 2025.

The decision, detailed in a European Commission press release, follows previous disbursements, with the third tranche sent in August 2025. These Russian assets remain frozen as part of sanctions imposed in response to Russia's ongoing conflict in Ukraine. While the assets themselves are not being confiscated, the interest they generate is now being redirected.

Funding Allocation for Ukraine

Under the new proposal, 95% of the funds will be channeled to Ukraine through the EU's Credit Cooperation Mechanism (ULCM). This mechanism provides grants to cover Ukraine's debt obligations and support essential public services. The remaining 5% will be allocated via the European Peace Facility (EPF), which is intended to support Ukraine's military and defense needs.

Commitment to Ukraine's Victory

European Commission President Ursula von der Leyen emphasized the significance of this financial aid, stating, "This €1.4 billion will go where it is most needed: to support the Ukrainian state, to maintain essential public services, and to support the brave Ukrainian soldiers. Our commitment to Ukraine's victory and freedom is unwavering."

Background on Asset Seizure

In February 2024, the EU Council adopted a resolution obligating central depositories holding over €1 million in frozen Russian central bank assets to allocate any excess profits. Subsequently, on May 21, 2024, the Council approved legislative acts enabling the use of these profits for Ukraine's benefit.

This initiative underscores the EU's continued financial support for Ukraine amidst the ongoing conflict.

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