EU to transfer €1.4B in profits from frozen Russian assets to Ukraine

Key Points:

• The European Union has collected €1.4 billion from immobilized Russian central bank assets and will allocate the funds to support Ukraine, marking the fifth such transfer totaling €8 billion in profits since the assets were frozen.
• Ninety-five percent of the latest payment will assist Ukraine in repaying EU and G7 loans via the Ukraine Loan Cooperation Mechanism, while 5 percent will fund Ukraine’s military and defense needs through the European Peace Facility.
• EU Commission President Ursula von der Leyen emphasized that Russia must pay for its destruction in Ukraine, with the EU using proceeds from frozen Russian assets to support Ukraine’s resistance against the ongoing war.
• The announcement followed a deadly Russian missile and drone attack on Kyiv that killed at least 17 people, with Ukrainian President Zelenskyy criticizing delays in Western air-defense deliveries for the casualties.
• Since Russia’s 2022 invasion, the EU has frozen over €210 billion in Russian central bank reserves and mandated that profits generated from these assets be redirected to aid Ukraine while preserving the principal reserves.