Azernews.Az

Ulviyya Poladova

Read more

The European Commission announced that the European Union has generated €1.4 billion ($1.6 billion) in windfall profits from immobilized assets of the Russian Central Bank, with the funds earmarked to support Ukraine, AzerNEWS reports.

This is the fifth transfer to Ukraine from these financial resources and covers revenues generated during the first half of 2026.

The transfer follows a €1.4 billion tranche provided in March, bringing the total windfall profits generated from immobilized Russian assets since the sanctions were imposed to €8 billion ($9.3 billion).

"Russia must pay for the destruction it has caused. We are using the proceeds from immobilized Russian assets to help ensure this. We are providing Ukraine with another €1.4 billion in proceeds from these assets," European Commission President Ursula von der Leyen said.

According to the European Commission, 95% of the proceeds will be allocated through the Ukraine Loan Cooperation Mechanism (ULCM), which provides non-repayable support to help repay EU macro-financial assistance loans and financing provided to Ukraine under the G7’s Extraordinary Revenue Acceleration (ERA) loan initiative.

The remaining 5% will be directed through the European Peace Facility (EPF) to support Ukraine’s military and defense needs.

The funds come from interest generated on cash balances linked to Russian Central Bank assets that were immobilized under EU sanctions following the outbreak of the war in Ukraine.