EU to transfer €1.4 billion from profits on frozen Russian assets to support Ukraine

The European Union will allocate €1.4 billion in proceeds from frozen Russian assets to support Ukraine.

On 31 March, the EU received €1.4 billion in additional profit generated from interest on frozen assets of the Russian central bank held in central securities depositories.

These assets are immobilised under EU sanctions imposed in response to Russia's war of aggression against Ukraine. While the assets themselves remain frozen, the interest accrued on cash balances does not belong to Russia. Following a proposal by the European Commission, it was agreed to use these funds to support Ukraine.

"These €1.4 billion will be directed where they are needed most: to sustain the Ukrainian State, preserve essential public services and support the brave Ukrainian Armed Forces. Our commitment to Ukraine's victory and freedom is unwavering," said European Commission President Ursula von der Leyen.

A total of 95% of the funds will be channelled to Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM), and 5% through the European Peace Facility (EPF).

The ULCM provides non-repayable support to help Ukraine service EU macro-financial assistance loans, as well as loans from G7 bilateral creditors under this mechanism.

The total volume of loan support under the mechanism amounts to €45 billion. Meanwhile, the EPF helps Ukraine meet urgent military and defence needs.

In December 2025, the EU adopted a decision to freeze Russian assets located in Europe for an indefinite period.

The law on the indefinite freezing of Russian assets was adopted to prevent a potential veto by Hungarian Prime Minister Viktor Orbán.