Brussels: EU leaders failed to reach an agreement on directly using frozen Russian assets to finance Ukraine, instead settling on a £90 billion ($105 billion) EU borrowing package to cover Kyiv's financing needs for the next two years, the European Commission chief said early Friday.

According to Anadolu Agency, Ursula von der Leyen, speaking after a European Council meeting, said member states had agreed to raise £90 billion through EU borrowing on capital markets for 2026 and 2027, but acknowledged that no consensus was reached on deploying immobilized Russian assets themselves. Von der Leyen noted the political challenges with the permanent immobilization of Russian assets, which previously required renewal every six months and faced potential vetoes from member states.

Von der Leyen emphasized that the newly secured status of the frozen assets means they can only be mobilized again with a qualified majority, preventing individual dissent from overturning the sanctions. Despite securing the assets, leaders did not agree to use them directly for funding Ukraine, opting for EU borrowing backed by budget headroom and a conditional repayment mechanism. The agreement stipulates that Ukraine will only repay the loans if Russia pays reparations.

She highlighted the continued unity among EU member states, noting the unanimous rollover of 19 packages of sanctions, and described the bloc's support for Ukraine as impressive over the nearly four years since the conflict began in February 2022.

Ukrainian President Volodymyr Zelenskyy expressed gratitude for the EU's decision to provide £90 billion to Kyiv, describing it as significant support that strengthens Ukraine's resilience. He emphasized the importance of keeping Russian assets immobilized and acknowledged the financial security guarantee provided by the EU for the coming years, expressing thanks for the unity and support in defending the continent's future.