EU sends 1.4 billion euros from frozen Russian assets profits to Ukraine

The European Union has successfully transferred 1.4 billion euros to Ukraine, generated from profits earned on frozen Russian Central Bank assets. This significant financial injection represents the fifth transfer of its kind, bringing the total revenue collected from these immobilized Russian assets to eight billion euros, according to the European Commission.

The bulk of this latest tranche, 95%, will be channeled through the "Loan Facility for Ukraine." This mechanism is designed to help Kyiv manage its loan repayments to the EU and G7 countries. The remaining 5% of the funds will be allocated to the European Peace Facility, intended to address Ukraine's urgent military and defense requirements.

European Commission President Ursula von der Leyen stated that Russia must be held accountable for the destruction it has caused. "Russia must pay for the destruction it has caused, and we are using the proceeds from immobilized Russian assets to ensure that it does," she remarked, underscoring the EU's stance on financial reparations.

The EU initially froze over 210 billion euros of the Russian Central Bank's reserves. Since 2024, financial institutions holding these assets are mandated to redirect any extraordinary profits they generate to Brussels. These profits are then disbursed to Ukraine, as part of the ongoing international support for the country amidst the conflict.

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Russia must pay for the destruction it has caused, and we are using the proceeds from immobilized Russian assets to ensure that it does.