EU releases €1.6 billion from frozen Russian assets to back Ukraine

The European Union has received a third tranche of extraordinary revenues amounting to €1.6 billion from frozen assets of the Central Bank of Russia, with 95%—over €1.5 billion—earmarked for Ukraine’s loan repayments.

According to a statement from the European Commission, the third transfer of income generated from the frozen Russian central bank assets will be directed towards supporting Ukraine, Caliber.Az reports.

Last Friday, the EU received this latest sum, which consists of revenues accumulated in the first half of 2025 and held in the EU’s central securities depositories.

The first such transfer was made in July 2024, followed by a second in April 2025.

EU officials explained that 90% of the funds from the first two transfers were allocated via the European Peace Facility (EPF), with the remaining 10% distributed through the Ukraine Facility instrument.

From this third instalment onwards, 95% of the revenues will be channelled through the Ukraine Loan Cooperation Mechanism (ULCM), and 5% via the EPF.

The ULCM provides non-repayable support to help Ukraine repay macro-financial assistance loans from the EU and loans from bilateral creditors.

These extraordinary revenues come from assets frozen under EU sanctions imposed in response to Russia’s aggression against Ukraine. While the assets themselves remain blocked, the interest accrued on these frozen funds can be used to support Ukraine.