EU transfers €1.5 billion raised from Russian assets for Ukraine

The EU froze around €200 billion of Russian central bank assets held in the bloc as part of sanctions imposed on Moscow for its invasion of Ukraine in 2022.

The European Union on Friday (Jul 26) said €1.5 billion (US$1.6 billion) had been made available to support Ukraine, the first chunk of money earned from profits on Russian frozen assets.

EU member states had agreed in May to use billions of euros in profits from frozen Russian central bank assets to help arm Ukraine and fund its post-war reconstruction.

The EU froze around €200 billion of Russian central bank assets held in the bloc as part of sanctions imposed on Moscow for its invasion of Ukraine in 2022.

About 90 per cent of the funds frozen in the EU are held by Belgium-based international deposit organisation Euroclear.

"The EU stands with Ukraine. Today we transfer €1.5 billion in proceeds from immobilised Russian assets to the defence and reconstruction of Ukraine," EU chief Ursula von der Leyen said in a statement.

"There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live," she added.