The European Union will provide Ukraine with 1.4 billion euros in windfall profits from frozen assets of the Russian Federation, according to the European Commission website. This payment marks the fifth such tranche, following a previous transfer in March 2026. Since the assets were immobilized, they have generated a total of 8 billion euros in windfall profits.
European Commission President Ursula von der Leyen stated that Russia must pay for the destruction it caused and that the EU is using funds from frozen Russian assets to enforce that requirement. She added that providing another 1.4 billion euros will help Ukraine resist Russia's illegal war and address urgent military and defense needs.
The money comes from assets of the Central Bank of the Russian Federation immobilized under EU sanctions. While the assets remain frozen, interest on cash balances does not belong to Russia, and the Council of the European Union decided to use the net profit to help Kyiv.
Funding Allocation and Prior Assistance
The EU will direct 95 percent of the funds to Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM) and 5 percent through the European Peace Facility (EPF). Prime Minister Serhiy Koretskyi noted that the money will strengthen defense and boost national resilience. He wrote that the response to Russian terror must be strengthening Ukraine, and Russia must pay for every new crime.
On June 30, Ukraine received 3.8 billion euros from the EU to fund priority defense needs, including Ukrainian drone production, defense industry capabilities, and urgent front-line supplies. On June 25, Ukraine received a first tranche of 3.2 billion euros from an EU loan totaling 90 billion euros, with those state budget funds allocated to defense capabilities and social resilience.
