EU receives €1.4 billion in revenue from immobilised Russian assets to be used for supporting Ukraine

This article is published in association with United Nations.

On 3rd of August, the European Union received €1.4 billion in windfall profits generated by the interest on the cash balances originating from immobilised assets of the Central Bank of Russia (CBR) held by Central Securities Depositories (CSDs). The receipt of this amount marks the fifth transfer of its kind, following a fourth tranche delivered in March 2026. It covers revenues accumulated during the first half of 2026. Since their immobilisation, the Russian assets have generated a total of €8 billion in windfall profits.

European Commission President, Ursula von der Leyen, said: “Russia must pay for the destruction it has caused. And we are using the proceeds from the immobilised Russian assets to make sure it does. We are making a further €1.4 billion of them available to Ukraine. This will support Ukraine’s continued resistance against Russia’s illegal war.”

These funds come from CBR assets immobilised under the EU sanctions, imposed in response to Russia’s war of aggression against Ukraine. While the assets themselves remain immobilised, the interest on the cash balances does not belong to Russia and upon the proposal by the Commission and the High Representative, the Council decided that these net profits should be used to support Ukraine. This measure is part of the EU’s continued commitment to stand with Ukraine for as long as it takes.

95% of the proceeds will be used to support Ukraine via the Ukraine Loan Cooperation Mechanism (ULCM) and 5% via the European Peace Facility (EPF). The ULCM provides non-repayable support to assist Ukraine in repaying the EU macro-financial assistance loan disbursed throughout 2025, as well as loans provided by G7 bilateral lenders under the G7 ‘Extraordinary Revenue Acceleration (ERA) Loans’ initiative. Total support under the ERA loans amounts to €45 billion. On the other hand, the EPF helps Ukraine to address its pressing military and defence needs.

Background

In response to Russia’s brutal and unjustified invasion of Ukraine, the European Union and its Member States adopted several packages of restrictive measures (sanctions) against Russia.

As part of these sanctions, the assets of the CBR held in the EU were immobilised. The prohibition on transactions involving the assets and reserves of the CBR and its affiliated entities has resulted in the accumulation of cash and deposits on the balance sheets of CSDs from maturing financial instruments, generating extraordinary revenues.

Following proposals by the Commission and the High Representative, in February 2024, the Council decided that central securities depositories holding more than €1 million in assets and reserves of the Central Bank of Russia, immobilised as a result of EU sanctions, must set aside the extraordinary cash balances accumulating due to those sanctions and may not dispose of the resulting net revenues generated by those assets.

Building on further proposals put forward by the Commission and the High Representative in March, on 21 May 2024 the Council adopted a set of legal acts enabling the use of these net profits for the benefit of Ukraine.

In December 2025, the Council decided to prohibit transfers of immobilised CBR assets back to Russia in a more durable way, on the basis of Regulation 2025/2600, which uses Article 122 TFEU as a legal basis.

For more information

First transfer of windfall profits

Second transfer of windfall profits

Third transfer of windfall profits

Fourth transfer of windfall profits

Ukraine Loan Cooperation Mechanism (UCLM)

European Peace Facility

Regulation 2025/2600 on emergency measures for Ukraine