On the morning of August 5, while Ukrainians were tallying the consequences of another massive Russian attack, news arrived from Brussels: the European Commission is transferring 1.4 billion euros to Ukraine. The money is neither a gift nor a loan, but profits that have accumulated on frozen assets of Russia's central bank. Prime Minister Sergiy Koretsky confirmed the receipt and immediately designated the funds' purpose — defense and state resilience.
European Commission President Ursula von der Leyen linked the decision directly to the overnight strike.
We wake up again to news of horrific crimes committed by Russia through its air attacks on Ukraine. Russia must pay for the destruction it has caused. And we are using funds obtained from immobilized Russian assets to ensure this. We are providing Ukraine with another 1.4 billion euros from them. This will support Ukraine's continued resistance to Russia's illegal war.
Where this money really comes from
An important clarification: 1.4 billion euros is not part of the frozen "body" of Russian assets, but profits accumulated on them. The frozen assets of Russia's Central Bank in the EU are valued at over €200 billion, and more than half are held by the Belgian financial institution Euroclear.
The assets themselves remain untouched due to the sanctions regime — legally Russia remains their owner. However, the interest and income they generate have been directed to Ukraine by the EU for several years.
This is not the first or last such tranche. This is already the fifth such transfer after the fourth tranche made in March 2026, and it covers income accumulated during the first half of 2026. In other words, the scheme works like a regular quarterly "tribute" from other people's money — predictable, but without sharp jumps in the amount.
The difference between promise and reality
Herein lies the main economic nuance of the story. Parallel to these regular tranches of hundreds of millions to billions of euros, Brussels has been discussing a much larger idea for months — a "reparations loan" worth tens of billions of euros, secured not by profits, but by the frozen assets themselves. Ukraine may not receive €140 billion from Russian money — this is precisely the sum that figured in calculations for this mechanism. However, there is still no political consensus among EU countries: the EU is preparing plan B after the issue was kicked to a new summit after the fourth deadlock, derailed in March 2026, and the process itself has dragged on since the first half of 2026.
So while the large reparations loan is stuck in negotiations between capitals (primarily due to Belgium's reservations, where the bulk of assets are physically stored through Euroclear), Ukraine receives only what manages to "trickle" in as interest. This is a stable, but incomparable source of financing compared to what was promised a year ago.
What will these funds be used for
Koretsky has already indicated the direction of fund use.
The EU is directing 1.4 billion euros to Ukraine from income generated by frozen Russian assets. The funds will be used to strengthen defense and strengthen the resilience of our state. The response to Russian terror should be Ukraine's strengthening. For each new Russian crime, Russia must pay. We thank all our European partners for their principled position. This gives us strength.
The phrase "state resilience" in practice typically means restoring energy infrastructure, hospitals and critical infrastructure after strikes — that is, money that goes directly back to where rockets landed the day before. This is a logical, though symbolic, cycle: strike — compensation at the expense of the aggressor's assets.
The question is only about scale and speed. While quarterly profit tranches are measured in billions, and a full-fledged loan of tens of billions remains hostage to negotiations in Brussels, will Ukraine have time to wait for the EU to finally agree on plan B?
