JUST IN: EU releases €1.4bn from frozen Russian assets to support Ukraine

Europe-Asia, International

BRUSSELS, Belgium (NPA) — The European Union has released €1.4 billion in proceeds generated from immobilised Russian Central Bank assets to support Ukraine, reinforcing its commitment to helping Kyiv withstand Russia’s ongoing invasion.

The European Commission announced on Monday that the funds represent the fifth transfer of windfall profits earned from the interest on cash balances originating from frozen assets of the Central Bank of Russia (CBR) held by Central Securities Depositories (CSDs).

According to the Commission, the latest disbursement covers revenues generated during the first half of 2026 and follows a previous tranche released in March 2026.

The Commission said immobilised Russian assets have so far generated a total of €8 billion in windfall profits since EU sanctions were imposed following Russia’s invasion of Ukraine.

European Commission President Ursula von der Leyen said the latest transfer demonstrates the bloc’s determination to hold Russia financially accountable for the destruction caused by the war.

“Russia must pay for the destruction it has caused. We are using the proceeds from the immobilised Russian assets to make sure it does. We are making a further €1.4 billion available to Ukraine. This will support Ukraine’s continued resistance against Russia’s illegal war,” von der Leyen said.

The European Commission explained that while the Russian Central Bank assets remain frozen under EU sanctions, the interest generated on the cash balances does not belong to Russia.

Following proposals by the European Commission and the High Representative for Foreign Affairs, the Council of the European Union authorised the use of the net profits to support Ukraine.

Under the arrangement, 95 per cent of the funds will be channelled through the Ukraine Loan Cooperation Mechanism (ULCM), while the remaining 5 per cent will be allocated through the European Peace Facility (EPF).

The Commission said the ULCM provides non-repayable financial support to help Ukraine service macro-financial assistance loans provided by the European Union and other G7 partners under the Extraordinary Revenue Acceleration (ERA) Loans initiative.

The ERA programme provides Ukraine with a total financing package of €45 billion, while the European Peace Facility supports the country’s urgent military and defence requirements.

The latest disbursement forms part of a broader package of restrictive measures adopted by the European Union in response to Russia’s invasion of Ukraine.

As part of those sanctions, the assets of the Central Bank of Russia held within the European Union were immobilised, preventing transactions involving the assets and reserves of the Russian central bank and affiliated entities.

The restrictions have resulted in significant cash balances accumulating within European financial institutions, generating extraordinary revenues through interest.

In February 2024, the Council of the European Union ruled that Central Securities Depositories holding more than €1 million in immobilised Russian central bank assets must retain the resulting cash balances and refrain from disposing of the net revenues generated.

Subsequent legal acts adopted in May 2024 authorised the use of those profits to support Ukraine.

The European Union further strengthened the sanctions framework in December 2025 by adopting legislation permanently prohibiting the transfer of immobilised Russian Central Bank assets back to Russia.

The Commission said the latest payment underscores the EU’s continued commitment to supporting Ukraine politically, financially and militarily for as long as necessary.