The European Union has received a third transfer of windfall revenues generated by frozen assets belonging to the Central Bank of Russia. This latest tranche amounts to €1.6 billion, of which 95% – over €1.5 billion – will be allocated to cover Ukraine’s loan repayments.

Source:European Commission press service in a comment to European Pravda

Details: The third tranche of extraordinary income from frozen Russian assets in the EU will be directed to support Ukraine.

"Last Friday, the European Union received €1.6 billion in so-called windfall profits generated by the interest on the cash balances originating from immobilised assets of the Russian Central Bank, held by central securities depositories," the European Commission said.

The first such transfer was made in July 2024, and the second in April 2025.

"The third covers revenues accumulated during the first half of 2025," EU officials added.

Quote: "90% of the first two tranches were used to support Ukraine via the European Peace Facility (EPF), and 10% via the Ukraine Facility. As from this third tranche, 95% of the proceeds will instead be used to support Ukraine via the Ukraine Loan Cooperation Mechanism (ULCM), and 5% via the EPF. The ULCM provides non-repayable support to assist Ukraine in repaying the macro-financial assistance loan from the EU as well as loans from bilateral lenders under the mechanism."

Background: 

• Windfall profits come from assets frozen under EU sanctions imposed in response to Russia’s aggression against Ukraine. While the assets themselves remain blocked, the interest generated on cash balances can be used to support Ukraine.
• European Pravda reported that in July 2025, Ukraine received €1 billion from the EU under another G7 initiative – the Extraordinary Revenue Acceleration (ERA) – funded by proceeds from those Russian assets.
• In June, Ukraine also received €1 billion from the EU derived from proceeds generated by frozen Russian assets.
• In 2024, the G7 agreed on a joint US$50 billion loan for Ukraine, to be repaid from revenues generated by frozen Russian assets. Under this arrangement, the EU will contribute a total of €18.1 billion.

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