On Friday, the European Union announced the release of €1.5 billion ($1.6 billion) to aid Ukraine, marking the first disbursement of funds derived from the profits on frozen Russian assets.

In May, the EU's 27 member states agreed to utilize the interest accrued on approximately €210 billion ($225 billion) in Russian central bank assets for military support and reconstruction efforts in Ukraine. These assets, primarily held in Belgium, were frozen as part of the sanctions imposed on Russia following its full-scale invasion of Ukraine. Brussels estimates that the interest on these assets could generate about €3 billion annually.

“The EU stands with Ukraine. Today we transfer €1.5 billion in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine. 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,” stated European Commission President Ursula von der Leyen.

This announcement comes shortly after Moscow claimed to have recaptured two villages in Eastern Ukraine. The recent advances by Russian forces in eastern and northeastern Ukraine have raised concerns in Kyiv about the need for sustained financial support to prevent further Russian gains.

The EU headquarters specified that 90% of the allocated funds would be directed to the European Peace Facility, a special fund used by many EU countries to reimburse themselves for arms and ammunition supplied to Ukraine. The remaining 10% would be integrated into the EU budget, supporting programs aimed at bolstering Ukraine's defense industry and reconstruction efforts. This division allows for flexibility, should some member states object to using their share for military purposes.