The European Commission announced significant financial support for Ukraine, which will reach 1.6 billion euros. These funds come from profits accumulated on frozen assets of the Russian Central Bank, which are blocked under European Union sanctions. This is the third such transfer, demonstrating the EU's continued support for Ukraine in the context of the ongoing conflict with Russia.
It is important to note that the Russian assets themselves remain frozen, but the interest they generate is redirected to support the Ukrainian state. This approach allows the EU to provide significant financial aid without directly violating international law regarding sovereign assets.
Distribution of funds
The distribution of the new tranche is strategically planned. The majority of the funds - 95%, will be provided through the Ukraine Loan Coordination Mechanism (ULCM). This mechanism was created specifically to manage financial support for Ukraine and will use the funds to cover loans the country has received. The remaining 5% of the amount will be directed to the European Peace Fund (EPF), which plays a key role in supporting peace initiatives and stabilization efforts in the region.
This financial injection is part of a broader international initiative known as "Accelerating Emergency Revenues" (ERA), launched by the G-7 in 2025. Since the start of this initiative, Ukraine has received an impressive sum of over 18.5 billion dollars from similar revenues, demonstrating significant international support for the country.
International strategy
The overall strategy adopted by the international community includes freezing approximately 300 billion dollars of Russian state assets. The aim is to use the profits from these assets to finance not only Ukraine's defense but also the country's future reconstruction after the conflict.
This move by the European Commission underscores the EU's determination to continue supporting Ukraine in the long term. It also demonstrates an innovative approach to sanctions, where not only are the financial capabilities of the sanctioned country restricted, but resources are also generated to aid the affected state.
Expert opinions and reactions
Experts note that this approach could set a precedent for future international conflicts and sanctions regimes. However, some legal experts express concern about the long-term consequences of using foreign state assets in this way.
Ukrainian authorities welcomed this decision, describing it as vital support in difficult times. For their part, Russian officials condemned the actions as illegal and threatened retaliatory measures.
The European Commission confirmed that it will continue to monitor the situation closely and adapt its strategy for supporting Ukraine according to developments on the ground.