European Union leaders agreed Thursday night to provide financial support to Ukraine over the next two years but postponed a decision on using billions of euros in frozen Russian assets to fund Kyiv’s defence.

The proposed use of €140 billion ($122 billion) in Russian assets held in a Belgian clearing house has been delayed until December amid concerns raised by Belgium over potential legal repercussions. European officials emphasized that Russia’s assets should remain frozen until the country ends its aggression and compensates Ukraine for the war’s damage.

Support Ahead of London Summit
The summit in Brussels preceded a London meeting of the “coalition of the willing”, where UK Prime Minister Sir Keir Starmer will push European leaders to increase long-range missile supplies to Ukraine. Ukrainian President Volodymyr Zelensky is attending alongside NATO Secretary General Jens Stoltenberg, Denmark’s Prime Minister Mette Frederiksen, and the Netherlands’ Dick Schoof, while French President Emmanuel Macron will join virtually.

European ministers discussed the possibility of making frozen Russian funds available to Ukraine through a so-called “reparations loan.” While many EU governments had hoped for approval, the final statement instructed the European Commission to assess Ukraine’s financing needs and explore support options rather than authorizing the use of the assets immediately.

EU Leaders Signal Political Backing
European Commission President Ursula von der Leyen described the issue as “complex” and requiring further clarification. European Council President Antonio Costa emphasized that the EU has committed to covering Ukraine’s financial needs for the next two years, sending a clear message to Moscow that Kyiv will have the resources necessary to defend itself. Zelensky welcomed the outcome as a political signal supporting the idea of leveraging Russian assets to maintain Ukraine’s defence capabilities.

Legal Hurdles and Russian Response
Belgium has expressed particular caution, citing potential litigation risks for Euroclear, the clearing house where the frozen funds are held. Belgian Prime Minister Bart De Wever described the plan as “uncharted territory” and warned of inevitable legal challenges.

Russia has criticized the EU’s proposals. Foreign Ministry spokeswoman Maria Zakharova warned that “any confiscatory initiatives from Brussels will inevitably result in a painful response.”

Sanctions Intensify Amid Global Tensions
The EU’s announcement coincided with new sanctions on Russia’s oil industry, following US measures targeting Rosneft and Lukoil. The EU also imposed restrictions on three Chinese businesses involved in Russian crude oil trading, aiming to cut funding for the war. China condemned the sanctions, calling them damaging to EU-China economic and trade cooperation.

The financial support package and sanctions signal a continued commitment by Western nations to bolster Ukraine amid ongoing military and economic challenges, while legal and diplomatic hurdles surrounding the use of frozen Russian assets remain unresolved.