The money comes from interest generated from the frozen Russian funds, not the funds themselves, which remain locked away from Moscow.
Brussels said 90 per cent of the money would go to a central fund used to pay for arms for Ukraine, known as the European Peace Facility.
The other 10 per cent would go to the EU’s separate Ukraine Facility to support the country’s reconstruction needs.
Ukrainian Prime Minister Denys Shymgal thanked the EU for its support.
“Thank you von der Leyen and the EU for your steadfast support and this significant contribution to Ukraine’s defence and reconstruction,” he said on social media.
“We are grateful to the EU for taking this vital step. This transfer will help us strengthen our defence capabilities,” the Ukrainian defence ministry said.
Russia however condemned the “illegal” move.
“This is reason, of course, for thoughtful actions in response to such illegal decisions, which are implemented by the European Union,” Dmitry Peskov, Russian President Vladimir Putin’s spokesman told journalists.
