The European Union will direct €1.6 billion in proceeds from frozen Russian assets to service loans granted to Ukraine.
This is reported on the official website of the European Commission.
While the assets themselves remain blocked, interest on the cash balances can be used to support Ukraine. 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 tranche, 95% of the proceeds will be used to support Ukraine through the Ukraine Lending Cooperation Mechanism (ULCM), and 5% through the EPF.
The ULCM provides non-repayable support to Ukraine in repaying the EU macro-financial assistance loan, as well as loans from bilateral creditors under the mechanism. The total credit support under the mechanism is €45 billion.
- The first tranche was in July 2024 — Ukraine received €1.5 billion. At that time, it was clarified that this was income received by EU operators and central securities depositories from frozen Russian sovereign assets.
- On 9 April 2025, the EU reported that it would provide €2.1 billion in proceeds from frozen Russian assets to support Ukraine. This was the second such transfer, covering proceeds accumulated during the second half of 2024.
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