The European Union has secured €1.6 billion ($1.9 billlion) from profits generated by frozen Russian assets, marking the third transfer under the program, the European Commission announced.

The allocation strategy has shifted with this latest tranche. While 90% of funds from the first two transfers supported Ukraine through the European Peace Facility (EPF) and 10% through the Ukraine Facility, the third transfer will see 95% directed to Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM) and 5% through the EPF.

The ULCM provides non-repayable support to Ukraine for repaying macrofinancial assistance loans from the EU and bilateral creditor loans within the mechanism framework. The total credit support amounts to €45 billion ($52 bn).

The EPF assists Ukraine in addressing urgent military and defense needs, according to the Commission’s statement.

The frozen assets program emerged as a response to Russia’s full-scale invasion of Ukraine. The EU froze Russian assets in Europe, with G7 jurisdictions holding approximately $280 billion in frozen Russian sovereign assets, according to Ukraine’s Ministry of Finance.

G7 countries committed to keeping these assets immobilized until Russia pays for crimes committed against Ukraine. Leaders agreed to provide Ukraine with a $50 billion loan, to be repaid using proceeds from these assets.

The United States already delivered $1 billion to Ukraine from frozen Russian assets at the end of 2024, demonstrating the mechanism’s implementation across multiple jurisdictions.