The European Union will provide Ukraine with another €1.4 billion in profits from frozen Russian assets. European Commission President Ursula von der Leyen announced this on X on the morning of 5 August.
The funds will support Ukraine’s resistance to the illegal war unleashed by Russia. The tranche will be the fifth such transfer.
In total, €8 billion in profits has accumulated since Russian assets were frozen.
“Russia must pay for the destruction it has caused. And we are using the proceeds from immobilised Russian assets to make sure it does. We are providing Ukraine with another €1.4 billion from them. This will support Ukraine’s continued resistance to Russia’s illegal war,” a quote from Ursula von der Leyen was published on the European Commission’s website.
This €1.4 billion comes from Russian central bank assets immobilised under EU sanctions imposed in response to Russia’s aggression against Ukraine. The EU has not yet dared to transfer the assets themselves to Ukraine, but the interest on the remaining cash balances does not belong to Russia.
"95% of the proceeds will be used to support Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM) and 5% through the European Peace Facility (EPF). The ULCM provides non-repayable support to help Ukraine service the EU macro-financial assistance loan disbursed during 2025, as well as loans provided by G7 bilateral creditors under the G7 initiative ‘Extraordinary Revenue Acceleration (ERA) Loans’. Total support under the ERA loans amounts to €45 billion,” the European Commission said.
Background
The ULCM mechanism was created in December 2024 specifically to channel revenues from frozen Russian assets toward servicing G7 loans of up to $45 billion. Funds available through the ULCM may be used only to repay the relevant loans provided to Ukraine by creditors under the G7 initiative for an additional lending mechanism to increase revenues to Ukraine’s budget.
In June 2024, the Group of 7 countries managed to agree on transferring to Ukraine the profits from frozen Russian assets. This refers to profits accumulated after 15 February 2024, when EU countries reached agreement on using these funds for Ukraine’s needs. The €5 billion accumulated before that agreement will not be transferred.