The European Union has decided to transfer an additional 1.6 billion euros to Ukraine, derived from the income generated by frozen assets of the Russian Federation located within the EU. This was announced by the European Commission.
This is reported by Kyiv24
Financial Support from Russian Asset Profits
According to the European Commission, last Friday the EU received 1.6 billion euros in so-called excess profits. This refers to the interest accrued on the cash account balances from the frozen assets of the Central Bank of Russia, which are held in central securities depositories in EU countries.
“Last Friday, the European Union received 1.6 billion euros in so-called excess profits derived from interest on cash account balances from the frozen assets of the Central Bank of Russia, held in central securities depositories,” the European Commission’s statement reads.
This tranche will cover funds accumulated during the first half of 2025. The income is generated from assets frozen under EU sanctions imposed in response to the outbreak of Russia’s full-scale war against Ukraine.
Long-Term Support Program: Ukraine Facility
In spring 2024, the EU Council approved the Ukraine Facility plan, which outlines the priorities of the Ukrainian government for recovery, reconstruction, state modernization, and implementation of reforms in the process of joining the EU over the next four years.
Under this program, Ukraine can expect stable funding in the form of grants and loans totaling up to 50 billion euros from 2024 to 2027.
Of this amount, according to EU information, approximately 32 billion euros are earmarked to support the reforms and investments outlined in the Ukraine Plan. Payments are made only if established criteria are met and key performance indicators are achieved.
Ukraine has already received 6 billion euros in transitional funding, 1.89 billion euros as advance funding, as well as three tranches of approximately 4.2, 4.1, and 3.5 billion euros.