Ukrainian President Volodymyr Zelensky has called on European Union leaders to approve a proposal that would unlock billions of euros in frozen Russian funds to support his country’s defense efforts.
Speaking at an EU summit in Brussels, Zelensky expressed hope for a “positive decision” regarding approximately €140 billion (£122 billion) in Russian assets currently frozen at Euroclear, a Belgian financial clearing house.
This contentious proposal would supplement existing EU sanctions against Russia, including new measures announced Thursday that target the Kremlin’s oil sector revenues.
The EU action followed similar steps taken by the United States against Russia’s petroleum industry—marking the first time President Donald Trump has imposed sanctions on Moscow amid growing frustration over President Vladimir Putin’s unwillingness to negotiate an end to the conflict. Trump also announced Wednesday evening that a proposed meeting with Putin in Budapest has been canceled without a set date for rescheduling.
“Every time I speak to Vladimir, I have good conversations and then they don’t go anywhere,” Trump stated.
The American sanctions specifically targeted major Russian oil companies Rosneft and Lukoil. Putin dismissed the “unfriendly” measures, saying they “will have certain consequences, but they will not significantly affect our economic well-being.”
Petroleum exports represent one of Russia’s most valuable revenue streams. Ukraine has requested authorization to strike Russian oil and energy infrastructure using long-range weaponry.
Zelensky had sought Tomahawk cruise missiles from Washington, but Trump declined last week, citing the weapons’ complexity and the year-long intensive training required for their operation.
Putin warned of a “very strong” retaliation should the US permit Ukrainian attacks on Russian territory using Tomahawks, characterizing deep strikes into Russia as a dangerous escalation.
During Thursday’s discussions, European ministers explored mechanisms for making the frozen Russian funds available to Ukraine through what officials termed a “reparations loan.”
Zelensky, attending the Brussels summit, said: “I hope that they will make a political decision, positive decision in one or another way to help Ukraine with funds. Russia brought war to our land, and they have to pay for this war.”
However, significant legal obstacles surround the use of these assets. Belgium has shown particular hesitation, concerned about potential liability if Russia successfully challenges Euroclear through legal channels.
EU foreign affairs chief Kaja Kallas acknowledged “some issues” regarding the asset-backed loan but emphasized the core principle: “The fundamental message is Russia is responsible for the damages in Ukraine and has to pay.”
Russia has condemned the proposal. Foreign ministry spokeswoman Maria Zakharova warned that “any confiscatory initiatives from Brussels will inevitably result in a painful response.”
The EU’s newest sanctions package also targets three Chinese entities—two oil refineries and an energy trading company—identified as “significant buyers of Russian crude oil.”
According to Kallas, these measures aim to “deprive Russia of the means to fund this war” while sending a clear message that “Russia can’t outlast us.”
China has criticized the decision, with a commerce ministry spokesperson stating it “seriously undermined the overall framework of China–EU economic and trade co-operation.”
