Brussels: EU leaders were unable to reach a consensus on the direct use of frozen Russian assets to support Ukraine. Instead, they agreed on a £90 billion ($105 billion) EU borrowing package to meet Kyiv's financial needs over the next two years, as announced by the European Commission chief.

According to Anadolu Agency, Ursula von der Leyen, speaking after a European Council meeting, conveyed that member states decided to raise £90 billion through EU borrowing on capital markets for 2026 and 2027. However, she acknowledged that no agreement was reached on utilizing the frozen Russian assets directly.

Von der Leyen explained that the asset freeze, which previously needed renewal every six months, is now secured permanently, eliminating the risk of a single member state vetoing the sanctions. She emphasized that the immobilized Russian assets could only be mobilized again with a qualified majority.

Despite this progress, EU leaders did not consent to use the assets directly to fund Ukraine. They endorsed EU borrowing backed by budget headroom and a conditional repayment mechanism, which stipulates that Ukraine will only repay the loans if Russia pays reparations. Otherwise, Ukraine is exempt from repayment.

Von der Leyen also highlighted the continued unity within the EU, noting that the sanctions package was unanimously rolled over. She praised the bloc's support for Ukraine amid concerns about potential fatigue over the ongoing conflict, which started in February 2022.

Ukrainian President Volodymyr Zelenskyy expressed appreciation for the European Council's decision to provide significant financial support, describing it as a strengthening factor for Ukraine's resilience. He reiterated the importance of keeping Russian assets immobilized and acknowledged the financial security guarantee for Ukraine's future. His remarks were shared on the US social media platform X.