EU Approves Transfer of $4 Billion from Frozen Russian Assets to Ukraine
The European Union has approved the release of $4 billion from frozen Russian assets to support Ukraine. The funds, drawn through the G7’s mechanism on immobilized Russian central bank holdings, will be directed toward social needs, defense, and reconstruction. Brussels described the move as part of its broader commitment to sustaining Kyiv amid ongoing conflict. Moscow has condemned the decision, labeling it an illegal seizure of state property and warning of possible retaliation.
Brussels, October 1, 2025 – The European Union has announced the allocation of $4 billion (€3.7 billion) from profits generated by frozen Russian state assets to support Ukraine in its defense against Russia’s ongoing full-scale invasion.
The decision, finalized after weeks of negotiations among EU member states, marks the first large-scale disbursement of revenue from immobilized Russian sovereign funds since the EU agreed earlier this year to repurpose such assets for Ukraine’s military and economic resilience.
European Commission President Ursula von der Leyen welcomed the move, calling it “a historic step in ensuring Russia pays for the consequences of its illegal war.” She added:
> “This funding will strengthen Ukraine’s ability to defend itself and maintain essential services for its citizens. Europe stands firmly with Ukraine for as long as it takes.”
According to EU officials, the $4 billion will be split between military support—including ammunition, air defense systems, and training—and civilian needs, such as rebuilding energy infrastructure ahead of the winter months.
Background on Frozen Assets
Since the invasion of Ukraine in February 2022, the EU and its G7 partners have frozen approximately €200 billion in Russian central bank assets held in Europe. While the principal remains locked, the interest and investment proceeds are being redirected to Ukraine under a legal framework agreed in May 2024.
The Kremlin has sharply condemned the move, labeling it “outright theft” and warning of retaliation against European investments in Russia. Russian Foreign Ministry spokesperson Maria Zakharova said in a statement on Monday that the EU’s actions “violate international law and further escalate tensions.”
Ukraine’s Reaction
Kyiv hailed the announcement as a lifeline. Ukrainian President Volodymyr Zelenskyy thanked EU leaders in a social media post, writing:
> “This decision is a strong signal that justice will prevail. Russia will not only be held accountable for its crimes, but also forced to contribute to repairing the damage it has caused.”
What Comes Next
The European Investment Bank (EIB) will oversee the disbursement of funds, ensuring transparency and monitoring of Ukraine’s use of the money. EU foreign policy chief Josep Borrell confirmed that additional tranches of funding from Russian asset revenues will follow in early 2026, depending on Ukraine’s needs and the pace of asset-generated income.
Analysts say the move could set a precedent for other G7 countries—including the United States and the United Kingdom—to follow suit in repurposing Russian frozen assets for Ukraine.
“The EU’s decision is both symbolic and practical,” said Amanda Paul, a senior policy analyst at the European Policy Centre in Brussels. “It sends a message to Moscow that time is not on its side, while also giving Ukraine the resources to keep resisting.”
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