Full Breakdown
EU Transfers €1.4 bn from Frozen Russian Asset Profits to Ukraine
8/7/2026, 3:10:07 AM
Core Event
The European Commission is scheduled to announce on August 5 that it will allocate €1.4 billion (? $1.6 billion) generated from interest on immobilised assets of the Central Bank of Russia to support Ukraine. The money was transferred to the EU on August 3. The transfer marks the fifth such disbursement since the mechanism was created.
Background & Context
Following Russia’s full-scale invasion of Ukraine in February 2022, the European Union froze more than €210 billion of Russian central-bank reserves held within its jurisdiction. Under a 2024 EU Council decision, financial institutions must ring-fence the excess profits these assets generate, allowing the EU to redirect the proceeds while leaving the principal untouched. The profits are earmarked for Ukraine through two channels: the Ukraine Loan Cooperation Mechanism (ULCM) and the European Peace Facility (EPF).
Data & Statistics
- Total windfall profits from the frozen assets since 2022: €8 billion (established across multiple Commission statements).
- Allocation breakdown of the latest €1.4 bn: 95 % (? €1.33 bn) to the ULCM for repayment of EU and G7 loans; 5 % (? €70 m) to the EPF for “pressing military and defence needs.”
- Asset base: roughly €210 billion in frozen Russian central-bank reserves, held primarily by the Belgian depository Euroclear and other Central Securities Depositories.
Official Statements & Responses
She framed the allocation as a direct response to recent Russian missile and drone attacks that killed at least 17 people in Kyiv. Ukrainian President Volodymyr Zelenskyy warned that earlier delivery of additional missile interceptors could have saved lives, blaming delays in Western air-defence shipments.
Criticism & Opposition
Russian Foreign Minister Sergey Lavrov criticised the practice, describing the use of proceeds as “stolen money” and arguing that diverting interest from frozen assets violates international law. He warned that Moscow would pursue legal action if the EU expands the use of these funds.
Verbatim Quotes
- “Russia must pay for the destruction it has caused. And we are using the proceeds from the immobilized Russian assets to make sure it does. We are making a further €1.4 billion of them available to Ukraine. This will support Ukraine's continued resistance against Russia's illegal war.” — Leyen, president
- “Russia must pay for the destruction it has caused.” — Leyen, president
- “The response to Russian terror must be a stronger Ukraine. Russia must pay for every new crime it commits,” — Serhii Koretskyi, ukrainian prime minister
These quotations capture the key positions of the EU Commission, its President, and the Ukrainian prime minister regarding the allocation and its intended impact.
