The European Union has approved the transfer of approximately €1.5 billion from profits generated by frozen Russian central bank assets to Ukraine. This funding will be used to help Ukraine repay loans for weapons and other military support.

The assets in question were frozen by the European Union following Russia’s full-scale invasion of Ukraine in 2022. The funds will be disbursed as early as July. According to the European Commission, 90 percent of the money will go through the European Peace Facility. This initiative allows member states that have supplied weapons and ammunition to Ukraine to recover some of the costs. The remaining funds will be used to support Ukraine’s own weapon purchases.

EU member states agreed that Russian proceeds and profits from frozen assets should not be returned to Russia while its invasion of Ukraine continues. The assets themselves remain frozen for now, but the generated profits account for this new package.

Belgium was selected as the main country to host these frozen assets, holding the largest share of Russian central bank funds within the European Union. Russia’s government has criticised these actions and warned of potential retaliation.