Brussels: The European Union has announced a significant financial contribution to Ukraine, receiving £1.6 billion in windfall profits generated by interest on the immobilised assets of the Russian Central Bank. This marks the third such transfer to the EU, following earlier tranches in July 2024 and April 2025, covering accumulated revenues from the first half of 2025.
According to Cyprus News Agency, these profits are the result of assets frozen under EU sanctions imposed due to Russia’s ongoing conflict with Ukraine. While the assets remain blocked, the interest on these cash balances is being used to support Ukraine. The latest tranche sees a shift in allocation, with 95% directed via the Ukraine Loan Cooperation Mechanism (ULCM) and 5% through the European Peace Facility (EPF). The ULCM is designed to provide non-repayable support to Ukraine, assisting in repaying loans from the EU and other bilateral lenders, amounting to £45 billion in total loan support. The EPF continues to address Ukraine’s immediate military and defense needs.
This initiative underscores the EU’s steadfast commitment to supporting Ukraine in the face of ongoing challenges and is part of a broader strategy to stand with Ukraine as long as necessary.
In addition to its financial support for Ukraine, the European Commission is taking proactive steps to address challenges in the EU’s eastern border regions. A call for evidence has been launched to develop the ‘Pact for the Eastern Border Regions,’ aimed at overcoming obstacles to socioeconomic development and enhancing civil preparedness and security. The Commission has proposed measures, including a mid-term review of Cohesion policy and a reinforced budget in the proposed 2028-2034 Multiannual Financial Framework.
The EU has also reaffirmed its stance on Belarus, marking the fifth anniversary of the country’s fraudulent presidential elections. High Representative/Vice-President Kaja Kallas and Commissioner Kos have called for an end to repression in Belarus and demanded the release of political prisoners. Since 2020, the EU has mobilised £170 million to support Belarusian civil society, independent media, and victims of repression, with continued sanctions on those violating human rights. The EU remains committed to supporting the Belarusian people in their pursuit of democracy.