There is nothing at all “bizarre” about this. The money will go to Russia because Ukraine owes Russia for all the money it borrowed from them. Russia has also just flat out given Ukraine billions since the breakup of the USSR, mostly in the form of below market rates on energy.
Remember, the deal Ukraine made with Russia that instigated the coup was worth $15 billion.
As I understand it some kind of international court in Great Britain set the whole deal up. As I understand it, the entire $15 billion must be paid back by the end of this year in American currency.