The cash will also help plug a "financial gap" caused by the ongoing war.
Ukrainian studio Frogwares has received an Epic MegaGrant and intends to use the cash to relocate staff affected by the Russian invasion.
The Sherlock Holmes Chapter One developer said the funds will be "crucial" in relocating employees to safer areas and helping those who've moved to more remote regions of Ukraine.
Frogwares is headquartered in Kyiv and earlier this year was one of a number of Ukrainian studios to call on people to help "force [Russian president Vladimir] Putin to withdraw from our lands."
"We're a peaceful nation, and in all the years since we gained our independence, we've never attacked or threatened anyone," said the company at the time. "Because of this situation our work will be impacted and our lives can be destroyed."
As a result of the ongoing war, the studio has indefinitely delayed the Xbox One version of Sherlock Holmes and said the invasion has severely impacted its production capabilities.
Offering more information following its receipt of the Epic MegaGrant, Frogwares explained the war has created a "financial gap" but said the grant will help it keep production moving forward.
"We’ve been working hard these past couple of months to renew and maintain the usual pipelines, and the MegaGrant will assist us in supplying our team with specialized equipment that’s vital for game development, and to migrate our data infrastructure," said the studio.
"In short, the Epic MegaGrant will be used to soften the financial blow from the war and stay on our feet, and we’d like to thank Epic Games for their support during this trying time."
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