The European Union has announced a transfer of €1.4 billion to Ukraine, sourced from interest accrued on frozen assets of the Central Bank of Russia. These assets have been immobilized due to EU sanctions imposed in response to Russia’s military actions against Ukraine.
The funds will be directed to support Ukraine’s government and military efforts, with the interest generated from these frozen assets being utilized as they are not accessible to Russia. This tranche specifically covers interest accumulated during the latter half of 2025.
The allocation of the funds is structured as follows:
- 95% will be disbursed through the Ukraine Loan Cooperation Mechanism (ULCM), aimed at repaying macro-financial assistance loans from the EU and G7 countries. The total support through this mechanism amounts to €45 billion.
- 5% will be allocated via the European Peace Facility (EPF) to address urgent military and defense needs in Ukraine.
Ursula von der Leyen, President of the European Commission, stated, “These €1.4 billion will be directed where they are most needed: to support the Ukrainian state, maintain essential public services, and bolster the brave Armed Forces of Ukraine.”
The EU is transferring €1.4 billion to Ukraine from interest on frozen Russian assets, with the majority aimed at supporting the country's government and military. This funding reflects ongoing international efforts to assist Ukraine amid its conflict with Russia.