EU to Channel Frozen Russian Assets Into New $92.7M Ukraine Defense Package
The European Union is preparing a new defense assistance package worth $92.7 million, set to be financed through profits generated from frozen Russian sovereign assets.
The Gaze reports this, referring to Suspilne.
A senior European official said the funds are expected to be transferred at the beginning of 2026. This allocation will mark the fourth tranche of support sourced from immobilized Russian financial reserves.
Earlier installments, disbursed in two rounds annually, amounted to $214.4 million per year. Funding under the upcoming package will largely target Ukraine’s defense industrial sector, with priority areas including drone manufacturing, air-defense development, and potentially additional ammunition procurement, according to media sources.
The European Commission is now drafting proposals for member states on how these assets can be utilized moving forward. The objective is not only short-term military assistance, but also deeper integration of Ukraine’s defense-production capabilities into the European industrial ecosystem.
The forthcoming package aligns closely with broader EU initiatives. This month, the European Parliament passed legislation establishing the European Defense Industrial Program (EDIP) – a multibillion-dollar framework designed to modernize the bloc’s military production capacity and formally incorporate Ukrainian defense companies into EU supply chains. EDIP, pending final approval from the EU Council, is also expected to operate through 2027.
In parallel, Poland announced it will become the largest beneficiary of the EU’s new SAFE (Security Action for Europe) program. Warsaw expects access to nearly $51 billion for national defense-technology development, industrial projects, and large-scale infrastructure strengthening under the Eastern Shield initiative.
Together, these financial instruments signal a wider shift in Europe’s long-term security planning, moving from emergency wartime aid toward an integrated defense economy.
As The Gaze reported earlier, NATO Secretary General Mark Rutte said Ukraine is on track to receive up to $5 billion in U.S.-sourced military equipment under the PURL program by the end of the year.
Read more on The Gaze: Using Frozen Russian Assets for Ukraine's Reconstruction: Creating a Reparations Fund to Restore Justice