Russian assets remain frozen. However, the interest they generate has already brought in 8 billion euros for the European Union.
On Wednesday 5 August, the Commission announced that it had received €1.4 billion in ‘exceptional profits’ accumulated during the first half of 2026. This is the fifth transfer made since the EU decided to use the revenue generated by the Russian Central Bank’s frozen reserves.
“Russia must pay for the destruction it has caused. And we are using the proceeds from frozen Russian assets to ensure this,” says the President of the European Commission, Ursula von der Leyen. “We are making a further €1.4 billion available to Ukraine. This will support Ukraine’s ongoing resistance to the illegal war waged by Russia.”
Brussels is therefore not confiscating the Russian reserves themselves. The sanctions prohibit their return or use, whilst maturing securities generate cash in the accounts of central securities depositories. It is the net income generated by this cash that the EU allocates to Ukraine.
Of the new tranche, 95 per cent – or €1.33 billion – will be channelled into the cooperation mechanism for loans to Ukraine. This mechanism provides grant funding designed to enable Kyiv to repay the loans granted in 2025 by the European Union and the G7’s bilateral lenders. These loans, grouped under the Extraordinary Revenue Acceleration initiative, total €45 billion.
The remaining 5 per cent, amounting to 70 million euros, will be channelled through the European Peace Facility. These funds may be used to meet Ukraine’s military and defence needs.
