The European Union has announced its intention to transfer 1.4 billion euros to Ukraine, derived as unexpected income from frozen assets of the Russian Federation. These funds were accumulated as interest on the financial resources of the Central Bank of Russia, held in central securities depositories.
This is reported by Finway
EU Support for Ukraine: Distribution of Funds
According to European Commission President Ursula von der Leyen, the funds will be directed to meet the key needs of the Ukrainian state. It is specified that 95% of the received funds are planned to be allocated within the Ukraine Loan Cooperation Mechanism (ULCM). The remaining 5% will be used through the European Peace Facility (EPF), which has repeatedly supported Ukraine since the onset of Russia’s full-scale aggression.
“This 1.4 billion euros will be directed where it is most needed: to ensure the Ukrainian state, maintain essential public services, and support the brave Armed Forces of Ukraine. Our commitment to Ukraine’s victory and freedom is unwavering.”
Details on Asset Utilization and Previous Tranches
The announced tranche will be the fourth such transfer of funds received as income from frozen Russian assets. This refers to income accumulated during the second half of 2025. The last time the European Union made such a transfer was in August 2025.
Currently, approximately 300 billion dollars of sovereign assets of the Russian Federation are frozen in Europe. The largest amount—about 190 billion euros—is held in the international depository Euroclear in Belgium. In the United Kingdom, around 30 billion euros are blocked, while in France, 19 billion euros of Russian assets are frozen.
Additionally, the EU supports Ukraine under the Extraordinary Revenue Acceleration (ERA) program, which allows for the mobilization of around 50 billion dollars in loans. The basis for these loans is the income from frozen Russian assets. The allocated funds are directed to support Ukraine’s state budget, meet military needs, and restore infrastructure.