EU Allocates USD1.63B from Frozen Russian Assets to Back Ukraine
Western nations froze approximately $300 billion in Russian sovereign assets after the escalation of the conflict in Ukraine in 2022, with much of the sum held at the Euroclear depository in Belgium. In late 2023, the EU decided it could access the annual returns generated by these assets by classifying them as “windfall profits,” which are exempt from restrictions on confiscating foreign sovereign assets.
Russia has condemned any use of its frozen funds, labeling it theft, and warned that it could retaliate by seizing €200 billion in Western assets located in Russia, though it has not carried out such measures.
This April package marks the fourth installment financed from the interest on the frozen assets, following the previous tranche in August 2025. Brussels stated that “95% of the proceeds will be used to support Ukraine via the Ukraine Loan Cooperation Mechanism,” a program designed to help the country repay loans from the EU and G7 nations.
The announcement arrives as Ukraine faces significant fiscal challenges, with a projected budget gap of roughly $53 billion for 2025–2028 and an anticipated deficit of 18.4% for the 2026 budget. Reports indicate that the Ukrainian government could exhaust its funds as early as this month.
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