European Union Earns €1.4 Billion in Interest from Frozen Russian Central Bank Assets to Support Ukraine

The European Union, according to a statement on the official website of the European Commission, has received €1.4 billion in profits from interest on cash balances derived from the frozen assets of the Central Bank of Russia (CBR). These assets are held in central securities depositories (CSDs) and are part of the measures implemented by the EU in response to Russia's aggression against Ukraine.

This transfer marks the fourth of its kind, with the previous tranche disbursed in August 2025. The latest transfer encompasses income that has been accumulated during the second half of 2025. It is important to note that while the assets themselves remain frozen, the interest on the cash balances does not belong to Russia; therefore, the European Commission has proposed using these funds to support Ukraine.

“This action is part of the EU's ongoing commitment to support Ukraine as long as necessary,” emphasized the European Commission. European Commission President Ursula von der Leyen stated, “This €1.4 billion will be directed where it is most needed: to support the Ukrainian state, maintain essential public services, and bolster the brave Armed Forces of Ukraine. Our commitment to Ukraine's victory and freedom is unwavering.”

According to the distribution plan, 95% of the funds will be utilized to support Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM), while 5% will be allocated through the European Peace Facility (EPF). The ULCM assists Ukraine in repaying macro-financial assistance loans from the EU, as well as loans from bilateral G7 creditors under this mechanism. The total loan support under these frameworks amounts to €45 billion. On the other hand, the EPF aids Ukraine in meeting its urgent military and defense needs.

It is worth recalling that as part of the EU sanctions in response to Russia's invasion of Ukraine, the European Union and its member states have enacted several packages of restrictive measures. Specifically, the assets of the Central Bank of Russia held in the EU have been frozen. The prohibition on transactions related to the assets and reserves of the Central Bank of Russia and its affiliates leads to the accumulation of cash and deposits on the balances of CSDs from redeemable financial instruments, generating revenue.

In February 2024, the EU Council decided that central securities depositories holding assets and reserves of the Central Bank of Russia exceeding €1 million, which were frozen as a result of EU sanctions, must retain the extraordinary cash balances accumulated due to EU sanctions and cannot dispose of the net income generated by operators within the EU.

On May 21, 2024, the EU Council adopted a series of legal acts allowing the use of these net profits for the benefit of Ukraine. In December 2025, the EU leaders' summit approved the provision of financial support to Ukraine amounting to €90 billion in 2026-2027. Kyiv will receive a zero-interest loan backed by the EU budget. EU leaders have yet to agree on providing reparative loans using frozen Russian assets, and Ukraine will only be required to repay the loan after receiving reparations from Russia—until then, Russian assets in the EU will remain frozen.

On February 25, 2026, German Foreign Minister Johann Wadephul stated that the EU would not revert to an alternative method of supporting Kyiv that involves using frozen Russian assets. According to the German Foreign Minister, the EU has managed to find “a very good backup tool” for support—a €90 billion loan to Ukraine. On March 2, 2026, European Commission spokesperson Balazs Ujvari stated that the EC's position on using frozen Russian assets for Ukraine significantly differs from Wadephul's statement, who believes this issue has been removed from the EU's agenda.

On March 31, 2026, EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, reported that the EU is providing €80 million to Ukraine from the revenues generated by frozen Russian assets. This move is part of the EU's commitment to support Ukraine amid ongoing aggression from Russia.