EU transfers Ukraine $1.6 billion of proceeds from frozen Russian assets.

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The EU transferred Ukraine 1.5 billion euros (£1.6 billion) of profits from frozen Russian assets, European Commission President Ursula von der Leyen said on July 26. The funds will be used to support the "defense and reconstruction of Ukraine," von der Leyen said. "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."

Ukraine's Western partners and other allies froze around £300 billion in Russian assets at the start of the full-scale invasion in 2022. Roughly two-thirds are held in the Belgium-based financial services company Euroclear. EU ambassadors agreed in May to use the windfall profits from the frozen Russian assets to fund Ukraine's reconstruction and defense needs.

Kyiv is expected to receive roughly 3 billion euros (£3.2 billion) every year, according to earlier discussions. While some Group of Seven (G7) members, such as the U.S., proposed seizing Russian assets outright, the EU has been more hesitant, fearing the legal and fiscal pitfalls of confiscation. Instead, Brussels seeks to use windfall profits generated by the frozen assets and funnel them to Kyiv.

Opinion: Why arguments against using Russian assets for Ukraine don't hold water

If Ukraine is going to defeat Russia and rebuild itself after the war, it will need huge sums of money, probably exceeding what Western electorates and politicians are willing or able to provide.

The good news is that there is a massive pot of non-Western money already available: the £300