EU to Send €1.6 Billion from Frozen Russian Assets to Ukraine

The European Union will channel €1.6 billion ($1.9 billion) in interest from frozen Russian central bank assets to Ukraine, with 95% of the latest tranche earmarked to help Kyiv repay loans from G7 partners. The funds are part of the EU’s plan to use revenue from immobilized Russian assets – seized under sanctions over Moscow’s full-scale war – to support Ukraine’s military, reconstruction, and debt obligations.

EU member states agreed in May to direct billions in profits from frozen Russian holdings toward Ukraine in response to Russia’s full-scale invasion of its neighbor. The funds will help support Ukraine’s military and reconstruction needs.

The bloc froze around €200 billion ($232 billion) of Russian central bank assets in 2022, most of it – about 90% – held by Belgium-based Euroclear, which settles securities trades and holds assets safely. 

The latest  €1.6 billion announced on Aug. 11 represents interest earned in the first half of 2025 and is the third such transfer. The first tranche, in July 2024, delivered €1.5 billion, followed by a second in April 2025.

Unlike earlier transfers – split 90% through the European Peace Facility (EPF) for military aid and 10% through the Ukraine Facility for budget support – the latest distribution shifts 95% to the Ukraine Loan Cooperation Mechanism (ULCM). This channel provides non-repayable funds to help cover repayments on G7 loans, part of a $50 billion package announced in June 2024 under the Extraordinary Revenue Acceleration (ERA) initiative. The remaining 5% will still go to the EPF.

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The EU estimates frozen Russian assets will generate €2.5-3 billion ($2.8-3.4 billion) annually in interest, depending on market rates. Redirecting these revenues, Brussels says, ensures Ukraine receives critical support without adding to its debt burden.

The total amount of frozen Russian assets is estimated to be between $210 billion and $320 billion, with $191 billion locked in the Euroclear. In February 2024, Euroclear reported that $4.75 billion in interest had been generated by the funds.