EU channels €1.4 billion from frozen Russian asset interest to Ukraine

The European Union has received another €1.4 billion in windfall profits generated from immobilized Russian central bank assets and will direct the funds to Ukraine, marking the fifth such transfer under its sanctions-based framework. The latest tranche covers revenues accumulated in the first half of 2026 and follows a previous €1.4 billion transfer in March, bringing the total windfall profits generated from the immobilized assets to €8 billion since sanctions were imposed. The European Commission said 95% of the proceeds will be allocated through the Ukraine Loan Cooperation Mechanism to provide non-repayable support that helps Ukraine repay EU macro-financial assistance loans and financing extended under the Group of Seven's Extraordinary Revenue Acceleration Loans initiative. The remaining 5% will go through the European Peace Facility to support Ukraine's military and defense needs. The mechanism uses interest earned on cash balances linked to immobilized assets of the Central Bank of Russia rather than confiscating the principal itself. European Commission President Ursula von der Leyen said the proceeds are being used to ensure Russia pays for the destruction caused by the war.