How Europe Is Using Russia’s Frozen Assets to Fund Ukraine’s War

European nations have begun using profits from frozen Russian assets to fund Ukraine’s military. Rather than seizing the principal amounts, the EU is redirecting interest profits—billions of euros—from Russia’s immobilized central bank reserves held in Europe. Through complex financial mechanisms and legal loopholes, this money now flows through the EU budget to programs like the European Peace Facility, supplying weapons and aid to Ukraine.
This report breaks down how the system works, who benefits most from the contracts—France, Germany, Belgium, and others—and why the debate over sovereign immunity and international law is heating up.
📊 Graphics:
• Flowchart: Frozen Assets → Interest Profits → EU Budget → Ukraine Military Aid
• Split Screen: “Principal: Frozen” vs. “Interest: Repurposed”
• Kremlin Silhouette Fade
• Sources: Bloomberg, Reuters, Europarl.europa, RIDL, Euronews, Kyiv Independent