The European Commission has authorized the release of €1.4 billion in funding for Ukraine, drawn directly from the profits generated by immobilized Russian assets.
European Commission President Ursula von der Leyen announced the allocation on Wednesday, framing it as a direct response to recent Russian strikes on Kyiv that left more than 100,000 residents without power and caused significant infrastructure damage.
The funds will primarily be used to repay existing loans to Ukraine, effectively recycling capital that Kyiv has already spent on its defense efforts.
This mechanism allows the EU to maintain its financial support without requiring fresh budgetary appropriations from member states, a critical distinction as political fatigue sets in across several capitals.
The move marks a concrete operationalization of the EU's strategy to leverage frozen Russian wealth for Ukrainian reconstruction and defense.
The announcement follows a fresh package of EU sanctions targeting Russia's defense industry and energy exports, confirmed by the EU Council earlier this week.