The European Union received 1.6 billion euros from frozen assets of the Russian Federation. The money will go to Ukraine

The European Union has received the third transfer of 1.6 billion euros from the frozen assets of the Central Bank of Russia to support Ukraine. This was reported on Monday by the European Commission's press service.

"Last Friday, the European Union received 1.6 billion euros in so-called excess profits derived from interest on cash account balances from the Central Bank of Russia's immobilized assets held in central securities depositories," the report says .

The first tranche was transferred in July 2024, and the second in April 2025. The third transfer includes funds accumulated during the first half of 2025.

These windfall profits come from assets frozen under EU sanctions imposed in response to Russia's ongoing aggression against Ukraine. While the assets themselves remain blocked, the interest on the cash balances can be used to support Ukraine, the European Commission explained .

90% of the first two tranches were used to support Ukraine through the European Peace Facility (EPF) and 10% through the Ukraine Facility. Starting with this third tranche, 95% of the funds will be used to support Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM) and 5% through the European Peace Fund.

The EC clarified that the ULCM "provides non-repayable support to help Ukraine repay the EU's macro-financial assistance loan, as well as loans from bilateral lenders under this mechanism." The total amount of credit support under this mechanism is EUR 45 billion .

In addition, the EPF helps Ukraine meet its urgent military and defense needs.

"This step is part of the EU's ongoing commitment to support Ukraine for as long as necessary," the European Commission emphasized .

• on August 8, the Council of the European Union approved a new tranche of the Ukraine Facility for EUR 3.2 billion. Ukraine will receive less macro-financial assistance than it could due to failure to implement the reform plan.