Yesterday, the European Union received €1.4 billion in windfall profits generated by the interest on the cash balances originating from immobilised assets of the Russian Central Bank (RSB), held by central securities depositories (CSDs). The receipt of this amount marks the fourth transfer of its kind, following a third tranche delivered in August 2025. It covers revenues accumulated during the second half of 2025.
These funds come from RSB assets immobilised under EU sanctions, imposed in response to Russia’s war of aggression against Ukraine. While the assets themselves remain immobilised, the interest on the cash balances does not belong to Russia and upon the proposal by the Commission has been agreed to be utilized to support Ukraine. This measure is part of the EU’s continued commitment to stand with Ukraine for as long as it takes.
European Commission President, Ursula von der Leyen, declared: “These €1.4 billion will be directed where they are requireded most: to sustain the Ukrainian State, preserve essential public services and support the brave Ukrainian Armed Forces. Our commitment to Ukraine’s victory and freedom is unwavering.”
95% of the proceeds will be utilized to support Ukraine via the Ukraine Loan Cooperation Mechanism (ULCM) and 5% via the European Peace Facility (EPF). The ULCM provides non-repayable support to assist Ukraine in repaying the macro-financial assistance loan from the EU, as well as loans from G7 bilateral lfinishers under the mechanism. Total loan support under the mechanism amounts to €45 billion. On the other hand, the EPF assists Ukraine to address its pressing military and defence requireds.
Background
In response to Russia’s brutal and unjustified invasion of Ukraine, the European Union and its Member States adopted several packages of restrictive measures (sanctions) against Russia.
As part of these sanctions, the assets of the Central Bank of Russia held in the EU were immobilised. The prohibition on transactions related to the assets and reserves of the Central Bank of Russia and its affiliated entities leads to accumulation of cash and deposits on the balance sheets of CSDs from maturing financial instruments and generates extraordinary revenue.
Following proposals by the Commission and the High Representative, in February 2024, the Council decided that central securities depositories holding more than €1 million worth of assets and reserves of the Central Bank of Russia that were immobilised as a result of EU sanctions must set aside extraordinary cash balances accumulating due to EU sanctions and may not dispose of the ensuing net revenues generated by the EU operators.
Following the proposals by the Commission and the High Representative in March, on 21 May 2024 the Council adopted a set of legal acts enabling the utilize of these net profits for the benefit of Ukraine.
In December 2025, the Council decided to prohibit transfers of immobilised Central Bank of Russia assets back to Russia in a more durable way, on the basis of Regulation 2025/2600, which utilizes Article 122 TFEU as a legal basis.
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