European Commission allocates €1.4B from frozen Russian assets to Ukraine

The European Commission transferred €1.4 billion in profits generated from frozen Russian central bank assets on March 31, routing the funds toward Ukraine’s war effort and loan repayment obligations. It’s the fourth such allocation, and the money comes from extraordinary revenues accrued during the second half of 2025 on roughly €210 billion in Russian central bank assets immobilized across EU central securities depositories, primarily Euroclear. Where the money goes The allocation follows a framework the EU established in 2024. It splits neatly: 95% of the funds flow through the Ukraine Loan Cooperation Mechanism, known as ULCM, which helps Ukraine service and repay loans under the G7’s Extraordinary Revenue Acceleration initiative. The remaining 5%, roughly €70 million in this tranche, goes to the European Peace Facility for direct military assistance. The G7’s ERA loans to Ukraine have cumulatively reached nearly €45 billion. The frozen asset revenues essentially act as a servicing mechanism for that debt, letting Ukraine focus its own limited fiscal resources elsewhere. The EU isn’t actually confiscating the principal. The €210 billion in Russian central bank assets remains te...