EU Transfers €1.4 Billion from Frozen Russian Assets to Ukraine

The European Commission announced on Wednesday that it will transfer €1.4 billion in interest and windfall profits generated from frozen Russian central bank assets to Ukraine. The funds, which the bloc received on August 3, mark the fifth such transfer and contribute to a total of €8 billion in profits generated by the immobilized assets.

Approximately 95 percent of this latest tranche will be channeled through the Ukraine Loan Cooperation Mechanism to assist Kyiv in repaying EU and G7 loans. The remaining 5 percent will be allocated via the European Peace Facility to fund military and defense requirements.

European Commission President Ursula von der Leyen stated the move ensures Russia pays for the destruction it caused. Ukrainian Prime Minister Serhii Koretskyi noted that the funds will be used to strengthen national defense and fortify state resilience.