EU to send extra $1 billion from frozen Russian asset profits for Ukraine's defense

The EU will allocate 900 million euros ($1 billion) from profits generated by frozen Russian assets to fund weapons and ammunition for Ukraine, EU Deputy Secretary General for Peace, Security and Defense Charles Fries said on May 12.

The new tranche brings total recent EU defense support for Ukraine to 3.3 billion euros ($3.6 billion), marking a significant expansion of European efforts to boost Kyiv's defense industry.

Speaking at the second EU-Ukraine Defense Industries Forum, Fries said contracts signed last week in Lviv will channel the funds into modern sectors of Ukraine's defense industry, including drone and missile production.

On May 9, EU Foreign Affairs Chief Kaja Kallas and foreign ministers signed a landmark agreement in Lviv to transfer 1 billion euros ($1.1 billion) in profits from frozen Russian assets to Ukraine.

That agreement focuses on joint production and procurement of military equipment.

Since Russia launched its full-scale invasion in 2022, Western countries have frozen approximately $300 billion in Russian sovereign assets.

In October 2024, the Group of Seven (G7) approved nearly $50 billion in loans for Ukraine to be repaid from the proceeds of those frozen funds.

Kyiv has consistently urged allies, particularly the U.S. Treasury, to formalize mechanisms for using frozen Russian assets to finance defense and reconstruction.

Western governments have primarily relied on reallocating interest income generated by the frozen funds to support Kyiv.

The Kremlin has warned of retaliation if Russian assets are confiscated outright for Ukraine's benefit. In early 2024, Moscow amended its legislation to allow counter-seizure of Western-owned property in response to asset seizures abroad.

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The Kyiv IndependentAnna Fratsyvir