EU leaders gather in Brussels to give green light to funding for Ukraine

European Union leaders have reached an in-principle decision to support Ukraine financially over the next two years using frozen Russian assets, Reuters reported.

As EU Council President Antonio Costa revealed on Thursday, the bloc will announce its decision on Ukraine before formalizing details of the deal.

Meanwhile, Belgium, the country where Euroclear Bank, the central securities depository holding Russian assets in question, is based, wants the EU to agree upon several measures before going any further with the initiative. As Prime Minister of Belgium Bart De Wever emphasized, EU states must agree to share the legal and financial risks and ensure complete transparency about the plan’s legal basis. Moreover, all other countries holding frozen Russian assets must also join the move.

Costa said the EU’s decision guarantees Ukraine’s financial stability for the next two years, with the European Commission tasked with drafting the legal framework for the asset plan.

The summit also saw the EU formally approve a new sanctions package against Russia, including a ban on Russian liquefied natural gas from 2027 and restrictions on shadow tanker operations and certain Chinese refineries.

Ukrainian President Volodymyr Zelenskyy, attending the meeting in Brussels, welcomed both the EU and recent U.S. sanctions on Russian oil companies. At the same time, the Kremlin condemned the seizure of its property and threatened retaliation.