DAILY NEWS
Brussels, 01 April 2026
EU to deliver €1.4 billion in revenue from immobilised Russian assets to be used for support to Ukraine
Yesterday, the European Union received €1.4 billion in windfall profits generated by the interest on the cash balances originating from immobilised assets of the Russian Central Bank (RSB), held by central securities depositories (CSDs). The receipt of this amount marks the fourth transfer of its kind, following a third tranche delivered in August 2025. It covers revenues accumulated during the second half of 2025.
These funds come from RSB assets immobilised under EU sanctions, imposed in response to Russia's war of aggression against Ukraine. While the assets themselves remain immobilised, the interest on the cash balances does not belong to Russia and upon the proposal by the Commission has been agreed to be used to support Ukraine. This measure is part of the EU's continued commitment to stand with Ukraine for as long as it takes.
European Commission President, Ursula von der Leyen, said: “These €1.4 billion will be directed where they are needed most: to sustain the Ukrainian State, preserve essential public services and support the brave Ukrainian Armed Forces. Our commitment to Ukraine's victory and freedom is unwavering.”
95% of the proceeds will be used to support Ukraine via the Ukraine Loan Cooperation Mechanism (ULCM) and 5% via the European Peace Facility (EPF). The ULCM provides non-repayable support to assist Ukraine in repaying the macro-financial assistance loan from the EU, as well as loans from G7 bilateral lenders under the mechanism. Total loan support under the mechanism amounts to €45 billion. On the other hand, the EPF helps Ukraine to address its pressing military and defence needs.
Background
In response to Russia's brutal and unjustified invasion of Ukraine, the European Union and its Member States adopted several packages of restrictive measures (sanctions) against Russia.
As part of these sanctions, the assets of the Central Bank of Russia held in the EU were immobilised. The prohibition on transactions related to the assets and reserves of the Central Bank of Russia and its affiliated entities leads to accumulation of cash and deposits on the balance sheets of CSDs from maturing financial instruments and generates extraordinary revenue.
Following proposals by the Commission and the High Representative, in February 2024, the Council decided that central securities depositories holding more than €1 million worth of assets and reserves of the Central Bank of Russia that were immobilised as a result of EU sanctions must set aside extraordinary cash balances accumulating due to EU sanctions and may not dispose of the ensuing net revenues generated by the EU operators.
Following the proposals by the Commission and the High Representative in March, on 21 May 2024 the Council adopted a set of legal acts enabling the use of these net profits for the benefit of Ukraine.
In December 2025, the Council decided to prohibit transfers of immobilised Central Bank of Russia assets back to Russia in a more durable way, on the basis of Regulation 2025/2600, which uses Article 122 TFEU as a legal basis.
For more information
First transfer of windfall profits
Second transfer of windfall profits
Third transfer of windfall profits
Q&A: MFA for Ukraine
Regulation on Emergency Measures for Ukraine
Quote(s)
These €1.4 billion will be directed where they are needed most: to sustain the Ukrainian State, preserve essential public services and support the brave Ukrainian Armed Forces. Our commitment to Ukraine's victory and freedom is unwavering.
Ursula von der Leyen, President of the European Commission
By directing €1.4 billion in windfall profits from immobilised Russian assets to Ukraine, Europe is turning sanctions against the Russian aggressor into real support for Ukraine. We are making Russia pay by putting its war chest to work for Ukraine’s survival and recovery. In doing so, we reaffirm that Ukraine’s fight is Europe’s fight, until a just and lasting peace is secured.
Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification
Commission takes preparatory steps on financial support for Ukraine and boosting drone production
Today, the European Commission took preparatory steps for the implementation of the €90 billion Ukraine Support Loan, aimed at securing necessary budgetary support and accelerating urgent defence procurement for Ukraine in 2026 and 2027. The package adopted today includes a proposal for the Council to approve the overall amount of the EU's support to Ukraine for 2026 and a decision validating the use of procurement derogations for the first defence product schedule under the Loan, which will focus on drones.
European Commission President von der Leyen said: “We will deliver on the €90 billion loan to Ukraine. Today, we are taking the necessary preparatory steps to mobilise this year's budget and procure defence equipment, with a focus on Ukraine's cutting-edge drone industry. With this we send a clear message: the Commission stands ready to move forward. As we mark four years since the Bucha massacre, we remain fully and firmly behind the brave people of Ukraine and their fight for freedom.”
Commission proposes to mobilise €45 billion in support for Ukraine in 2026
Following the Commission's positive assessment of the Ukrainian Financing Strategy submitted by Ukraine on 24 March 2026, the proposal for a Council implementing decision adopted today sets out the provision of €45 billion to Ukraine by 31 December 2026. The remaining part of the €90 billion Loan is foreseen for next year. Following adoption of the available financial assistance by the Council, the Commission will proceed as soon as possible with the first disbursement to Ukraine. This comes in addition to contributions from international donors and takes into account Ukraine's external financing gap and defence needs. This proposal also defines the split between defence procurement and budget support: budget support will reach up to €16.7 billion, split equally between the Ukraine Facility and Macro-Financial Assistance, while support to Ukraine's defence industrial capacities will amount to €28.3 billion. The budgetary support will be underpinned with strong conditions related to the rule of law, fight against corruption, economic resilience and sustainability, with the first part set to be delivered through the Macro-Financial Assistance.
Commission allows for the use of derogations for the procurement of drones
As a country at war, Ukraine's capacity to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes. The Commission has therefore also adopted today a decision allowing Ukraine to use derogations for the procurement of drones. This will support the preparations for the first urgent defence procurements under the instrument and will be followed by additional product schedules on other defence products, including missiles and ammunition, in the coming months.
Next steps
The Commission's proposal for a Council Implementing Decision for approving assistance to Ukraine for 2026 will now be submitted to the Council for adoption. Based on this proposal, Member States will decide on the allocation of support under the Ukraine Support Loan for 2026, including through the Ukraine Facility, Macro-Financial Assistance and defence procurement.
Once the Council has adopted the legal basis authorising the Commission to start borrowing on the markets, the remaining legal and operational arrangements required to enable the first disbursements and launch procurements will be finalised by the Commission, Ukraine and Member States.
As with other EU financial support to Ukraine, the instrument will be accompanied by strong safeguards and conditionality, including on the rule of law, anti-corruption and the protection of the Union's financial interests.
Since the start of Russia's war of aggression against Ukraine, the EU and its Member States have provided €195 billion in overall support to Ukraine, including €3.7 billion from the proceeds of immobilised Russian assets - more than any other partners.
The Ukraine Support Loan covers two thirds of Ukraine's overall financing needs for 2026 and 2027, according to assessments by the International Monetary Fund. Continued and coordinated support from international partners therefore remains essential, including timely delivery on commitments by the G7 for 2026 and beyond, including under the G7-led ERA loans initiative.
Proposal for a Council Implementing Decision approving assistance to Ukraine in implementing the Ukrainian Financing Strategy
Commission Implementing Decision validating the use of derogations for drones in Ukraine
Commission presents a financial support package for Ukraine for 2026–2027
Regulation (EU) 2026/467 implementing enhanced cooperation on the establishment of the Ukraine Support Loan for 2026 and 2027
Regulation (EU) 2026/468 amending Regulation (EU) 2024/792 establishing the Ukraine Facility
We will deliver on the €90 billion loan to Ukraine. Today, we are taking the necessary preparatory steps to mobilise this year’s budget and procure defence equipment, with a focus on Ukraine’s cutting-edge drone industry. With this we send a clear message: the Commission stands ready to move forward. As we mark four years since the Bucha massacre, we remain fully and firmly behind the brave people of Ukraine and their fight for freedom.
Ukraine continues to face an urgent need for sustainable and predictable funding to ensure the Government can function and provide basic services to its citizens, as well as to procure the necessary military capabilities to defend its people and its sovereignty. Today's decisions mark a significant milestone in operationalising the EU's security commitments. Ukraine must be in a position of strength - on the Battlefield and at the negotiating table. This is a top priority for Europe's security.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy
The EU continues to deliver support for Ukraine. Today, we take another step towards implementing the Ukraine Support Loan with a positive assessment of the Ukrainian Financing Strategy. We now propose to provide €45 billion of the €90 billion foreseen under the Ukraine Support Loan in 2026 to bolster financial stability and strengthen defences. This is a clear demonstration of the EU’s solidarity with the Ukrainian people, support for their efforts to be part of the EU and unwavering commitment to securing a just and lasting peace. Ukraine’s fight has become Europe’s fight, and we will stand with Ukraine for as long as it takes.
We are committed to giving Ukraine the necessary tools to defend itself. Funding of up to €28.3 billion will be unlocked still this year to support Ukraine’s defence needs, support Ukrainian and European industrial capacities for this purpose. We are also enabling derogation from eligibility rules to meet immediate needs of Ukraine in the battlefield. Ukraine’s security remains a top priority for Europe and our goal is to ensure it has what it needs to sustain its defence efforts.
Andrius Kubilius, Commissioner for Defence and Space
Strengthening Ukraine’s public finances and providing clarity on how money is going to be delivered helps Ukraine in its war efforts. It also gives strong incentives to implement the necessary reforms related to Ukraine’s path to EU accession, including on rule of law and anti-corruption.
Marta Kos, Commissioner for Enlargement
EU reinforces the stability and predictability of its carbon market
The Commission has today announced a first concrete measure to reinforce the European Union Emissions Trading System (EU ETS). Today's proposal, which follows President von der Leyen's announcement at the March European Council, adapts the ETS's Market Stability Reserve (MSR) enhancing stability and predictability.
The Commission has proposed an amendment to the Market Stability Reserve Decision to strengthen the instrument that ensures a stable, well-functioning carbon market. Under the current system, all allowances in the reserve above 400 million are invalidated. The proposed amendment will stop the invalidation mechanism, allowing these allowances to be kept as a buffer that can support market stability. The MSR reduces the supply of allowances to the market when there are too many in circulation and injects allowances when there is market scarcity.
The EU ETS is a key driver for decarbonisation. It has massively reduced fossil fuel consumption, lowering the Union's dependence on imports and strengthening its resilience. In addition, it has driven major investments in the clean energy transition in renewables and low-carbon energy sources. These are homegrown and enhance our energy independence. However, in light of recent challenges, the EU ETS needs to be modernised and made more agile.
Mainly thanks to the ETS, domestic emissions in the EU dropped by 39%, while the economy grew by 71% between 1990 and 2024. In a context of heightened energy price volatility and geopolitical tensions, the Commission is working with Member States to ensure the ETS is a stable tool that continues to deliver these benefits while remaining robust, predictable and fit for purpose.
The proposed change will better equip the MSR to respond to future market developments, including potential tightness in supply in the coming decades. The proposal preserves the fundamental rules-based design of the MSR and the integrity of the EU ETS as a market-based instrument, while strengthening the system's ability to ensure both stability and predictability.
The MSR has been operational since 2019 as a rules-based mechanism to adjust the supply of allowances in the EU ETS. It successfully addressed the structural surplus of allowances that built up after the 2008 financial crisis and has since helped restore confidence in the carbon market. By the end of 2024, 3.2 billion allowances had been invalidated.
The proposal to amend the Market Stability Reserve (MSR) Decision will now be submitted to the European Parliament and the Council and would need to follow the ordinary legislative procedure (co-decision) for adoption.
A comprehensive review of the EU ETS will follow in July 2026. This will include any relevant adjustment to keep the MSR fit for purpose in the next decade.
Proposal for an Amendment to the Market Stability Reserve Decision
EU Emissions Trading System
Market Stability Reserve
Today, we are delivering on the one of the commitments made by our leaders. This marks an important first step in modernising our carbon market. By strengthening the Market Stability Reserve, we enhance EU ETS' resilience to volatility and ensure that it continues to drive decarbonisation, support competitiveness and foster clean investment.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth
(For more information: Eva Hrnčířová – Tel.: +32 2 298 84 33; Ana Crespo Parrondo - Tel.: +32 2 298 13 25)
Commission boosts support to Ukrainian deep tech innovators
The European Commission has awarded €20 million in funding to 41 cutting-edge Ukrainian start-ups and SMEs following a European Innovation Council (EIC) call to help them turn groundbreaking ideas into real-world solutions. Each company will receive between €300,000 and €500,000 along with the possibility of faster access to the EIC Accelerator, which offers larger grants and equity investments via the EIC Fund.
The initiative comes at a critical time as Ukrainian innovators face huge challenges, from limited access to capital to disruptions caused by Russia's war of aggression. The EU funding will help bridge a critical financing gap, enabling these deep tech pioneers to progress from early-stage development to market-ready deployment in vital sectors such as artificial intelligence, robotics, biotechnology, cybersecurity, and more.
Some examples of the selected companies include: Farsight vision - a novel method for detection and location of unauthorised drones near airports and critical infrastructure by analysing video feeds, without relying on GPS or radio signals. This enhances airspace security by speeding up incident response and protecting sensitive sites from potential threats; Anotherland – an AI-powered platform that transforms architectural and engineering plans into interactive digital twins for real estate and large-scale reconstruction projects. From a single source, it creates photorealistic images, promotional videos, and immersive virtual and augmented reality experiences. This helps developers, municipalities, and reconstruction agencies to showcase projects in days, while buyers and investors can explore future spaces, test designs, and make smarter decisions faster; Innovinnprom - using AI-powered to predict grain spoilage in silos by analysing temperature humidity and gas. By forecasting biological activity one to three days in advance, farmers and storage managers can take early action to prevent losses, a crucial tool for Ukraine's agriculture sector.
Commissioner for Startups, Research and Innovation, Ekaterina Zaharieva said: “Supporting Ukraine's most promising deep tech innovators is more than an investment in innovation, it is an investment in resilience and future growth. This funding will help integrate the Ukrainian start-ups into the European innovation ecosystem, strengthening Ukraine's long-term economic alignment with the EU.”
This funding builds on the Seeds of Bravery initiative launched in 2022 under the EIC in response to Russia's full-scale invasion of Ukraine. It has already provided Ukrainian tech companies with financial support and business services. Today's announcement takes it further, targeting companies ready to move from development to real-world demonstration and commercialisation.
(For more information: Balazs Ujvari - Tel.: +32 2 295 45 78; Isabel Arriaga e Cunha – Tel: +32 229-52117)
Commission releases €40 million to support French winemakers
The European Commission is releasing €40 million support from the agricultural reserve to help French wine producers address market pressures on the wine sector in France. The funding will finance a temporary exceptional crisis distillation measure and will remove up to 1.2 million hectolitres of surplus red and rosé wines from the market to stabilise declining prices.
France's wine sector has faced mounting pressure due to shifting consumer preferences, climate change impacts, geopolitical trade disruptions, and a drop in bulk wine prices. Despite a 16% reduction in production, compared to long-term averages, oversupply has driven prices down, threatening the livelihoods of producers, particularly in regions specialising in red and rosé wines.
The emergency measure will offer €33 per hectolitre to distil unsold stocks, easing market pressure ahead of this year's harvest. This latest support complements the Commission's broader Wine package, which includes further measures to help the sector manage production potential, as well as to adapt to evolving consumer preferences, and unlock new market opportunities.
Commissioner Hansen said: “French wine producers are the backbone of Europe's viticultural heritage, but at the moment they face unprecedented market challenges. This is an essential response, taken in close coordination with French government, to address the collapse in prices and the saturation of stocks in France. With this €40 million support we aim to provide relief to the market.”
More information is available online.
(For more information: Louise Bogey – Tel.: +32 2 296 97 76; Kateřina Horáková - Tel.: +32 2 299 93 10)
Commission awards €7.4 million to media reporting on European affairs
The European Commission announced the selection and financing of three European-level newsrooms, the European Media hubs, which will report on EU affairs for the next two years.
The results announced today follow an open call for proposals published in 2025.
The first, Project BEAM, coordinated by Arte, will deliver a diverse editorial mix of audiovisual pieces and in-depth articles. Partners will include, among others, Internazionale and Gazeta Wyborcza. Then, PULSE 2, coordinated by the Centro per la Cooperazione Internazionale/Osservatorio Balcani Caucaso Transeuropa, will focus on cross-border online journalism. Participating newsrooms include HVG and HotNews. Finally, Lens EU, coordinated by OKO.press and with consortium members such as AFP and TVNET, will produce weekly podcasts and in-depth newsletters.
All supported projects operate with full editorial independence.
The funding is part of the EU's Multimedia Actions, which aim to increase production and consumption of independent information on European affairs across the EU in many languages.
Under the same Multimedia Actions budget line, a total of €21.1 million will be made available through calls for proposals to media consortia in support of the European public sphere debate and media freedom and pluralism.
More information on the Commission's funding opportunities for the media sector can be found online.
(For more information: Thomas Regnier — Tel.: +32 2 299 10 99; Patricia Poropat – Tel: +32 2 298 04 85)
EU releases additional €2 million in humanitarian aid for the Cuban population
In view of the worsening humanitarian conditions in Cuba, the European Commission has released an additional €2 million in humanitarian aid. This funding will contribute to provide logistics support to humanitarian partners delivering urgent relief to the most vulnerable, due to the current energy crisis and related difficulties on the distribution of food and drinking water.
This funding adds to the €4 million already approved earlier this year as a regional allocation for the Caribbean, which has been dedicated mainly to address increasing needs in Cuba. It also follows the assistance provided last year after hurricane Melissa caused extensive damage in the island. In 2025, a total of nearly €6 million was mobilised for disaster preparedness and emergency response in Cuba.
“The EU stands with the people of Cuba in their hour of need. After Hurricane Melissa, we were there. And today, we are stepping up again with €2 million in humanitarian aid to help deliver food and safe drinking water to those who need it most. In a country facing an energy crisis and growing shortages, this support will help keep life-saving aid flowing to up to two million people in need.” Commissioner for Preparedness and Crisis Management, Hadja Lahbib, said.
(For more information: Eva Hrnčířová – Tel.: +32 2 298 84 33; Quentin Cortès – Tel.: +32 2 296 47 35)