EU to Allocate €1.6 Billion in Interest from Frozen Russian Assets to Support Ukraine
Brussels, August 11, 2025 — The European Commission has announced that Ukraine will receive €1.6 billion generated from interest on Russian Central Bank assets that have been frozen under EU sanctions. While the principal assets will remain blocked, the revenue they accrue will now be redirected to aid Ukraine’s defense, reconstruction, and economic stability.
The assets in question were immobilized as part of sweeping sanctions imposed on Russia following its full-scale invasion of Ukraine in 2022. According to the Commission, the funds will not diminish the frozen reserves themselves but will instead utilize the profits they generate, ensuring compliance with international legal frameworks while channeling financial support to Kyiv.
European Commission officials framed the decision as both a practical and symbolic measure, reinforcing the EU’s long-term commitment to Ukraine’s sovereignty and resilience. “For a strong Ukraine in a secure Europe,” the statement read, underlining the link between Ukraine’s stability and broader European security.
The €1.6 billion will be part of a structured disbursement plan, with funding expected to support Ukraine’s military needs, humanitarian relief, and reconstruction projects, including energy infrastructure repairs and support for displaced communities.
While the move has been welcomed by Ukrainian leaders, Moscow has condemned the measure, calling it an unlawful appropriation of sovereign assets. EU legal experts maintain, however, that using interest from immobilized funds for aid does not violate international law.
This latest step adds to a growing range of EU initiatives aimed at sustaining Ukraine’s defense and recovery, as the war enters yet another year without signs of a lasting resolution.
