The European Commission has announced plans to provide Ukraine with €1.4 billion in interest earnings from frozen Russian Central Bank assets held at Euroclear in Brussels.
The funds will be directed toward maintaining Ukraine's government, securing essential public services, and supporting its military forces, Commission President Ursula von der Leyen said.
Following Russia’s invasion in 2022, the European Union decided to freeze its Central Bank’s assets. Since 2024, interest generated from these assets has been allocated to Ukraine.
While the Commission had proposed using the principal funds last year, resistance from Belgium led EU Member States instead to approve a €90-billion joint loan from financial markets.
However, the loan process has hit a roadblock due to Hungary’s veto, with Hungarian Prime Minister Viktor Orbán reportedly using his leverage amid campaigning for the parliamentary elections on 12 April. The Commission has nonetheless begun preparatory actions to disburse the funds rapidly when the veto is lifted.
On Wednesday, the Commission presented Member States with a funding plan for 2026, which outlines €45 billion in support, including €16.7 billion for Ukraine’s state budget and €28.3 billion for defence.
Additionally, Kyiv will be granted exemptions from EU procurement rules for urgent drone purchases.
The Commission had repeatedly warned that Ukraine could face financial shortfalls from the second quarter of this year. A spokesperson expressed hopes that the first credits would be issued “in the early part of the second quarter.”
