BRUSSELS, 24 October (H.S.): European Union leaders on Thursday agreed to support Ukraine’s financial needs for the next two years but stopped short of approving a controversial plan to use frozen Russian assets for a massive loan to Kyiv.

A final decision on the proposed €140 billion (£122 billion) reparations loan was deferred until December after Belgium raised legal and financial concerns.During marathon talks, EU leaders debated a proposal to leverage assets from Russia’s central bank, frozen since the 2022 invasion and largely held in the Belgian clearing house Euroclear.

The plan would provide crucial funding for Ukraine’s defense, but Belgium expressed reluctance, fearing it would have to bear the legal and financial consequences if Russia were to challenge the move.The final summit declaration committed to exploring options for financial support based on an assessment of Ukraine’s financing needs but omitted explicit backing for the loan.

This is a topic that is certainly not trivial. It’s very complex, stated European Commission President Ursula von der Leyen. However, European Council President Antonio Costa assured that Ukraine would receive the financial resources it needs, sending a clear message to Russia.

Ukrainian President Volodymyr Zelensky, who attended the summit, welcomed the outcome as a signal of political support for the initiative.The delay came as both the EU and the US announced fresh sanctions targeting Russia’s oil revenue.

The US measures against oil giants Rosneft and Lukoil prompted President Donald Trump to shelve a planned meeting with Vladimir Putin, citing frustration that their talks don’t go anywhere . Russia has condemned the loan proposal, with its foreign ministry warning that any confiscatory initiatives from Brussels will inevitably result in a painful response.

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Hindusthan Samachar / Jun Sarkar