politics

April 2, 2026

EU uses interest from frozen Russian funds for new Kiev aid package

Brussels has called the €1.4 billion a “windfall profit” which does not belong to Russia. Moscow has described tapping its assets as “theft”

EU uses interest from frozen Russian funds for new Kiev aid package

TL;DR

  • The European Commission has allocated €1.4 billion ($1.63 billion) in financial aid to Ukraine.
  • The aid package is funded by the revenue generated from frozen Russian assets, which the EU deems "windfall profits".
  • Approximately $300 billion in Russian sovereign assets were frozen by Western supporters after the 2022 conflict escalation, with most held at Euroclear.
  • The funds will primarily go towards covering Kiev's debts to its Western backers through the Ukraine Loan Cooperation Mechanism (ULCM).
  • Ukraine faces a significant budget shortfall, with projected deficits for 2025-2028.
  • Russia views the use of its frozen assets as theft and has warned of potential retaliation.
  • The Bank of Russia has filed a lawsuit against Euroclear seeking compensation for frozen assets and lost profits.

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